HB 2377: teachers' school supplies; tax credit
PRIME SPONSOR: Representative Clodfelter, LD 10
BILL STATUS: House Engrossed
Relating to monies and a tax credit for classroom supplies.
Classroom Teacher Supply Assistance Account (Sec. 1, 5)
1. Requires school districts and charter schools to establish an Account in the M&O budget.
2. Instructs schools to distribute monies in the Account to teachers to purchase classroom supplies and materials, but not equipment.
3. Directs monies to supplement materials and supplies otherwise available to teachers.
4. Directs ADE to annually distribute appropriated monies by July 15 of each year based on the total number of classroom teachers employed at the school district or charter school.
5. Allows monies raised or donated for school supplies to be deposited in the Account.
6. Directs monies in the Account to be annually distributed in an equal amount to each classroom teacher, outlines distribution timeframes and prorates the amount for part-time teachers.
7. Allows for the distribution of monies to be provided by any means determined to be appropriate including direct deposit, check, debit card or purchasing card and requires debit cards to identify that the card is limited to classroom supplies.
8. Excludes purchases from competitive bidding requirements.
9. Asserts that monies received do not affect wages, hours or terms and conditions of employment and are not subject to collective bargaining agreements.
10. Permits teachers to decline or return monies without explanation or cause.
11. Requires teachers who accept monies to sign and date an acknowledgment of receipt containing a specified statement, maintain receipts for at least three years and return unspent monies at the end of the school year.
12. Permits ADE, school districts and charter schools to enter into private-public partnerships to increase available monies.
13. Appropriates $8,700,000 from the GF to ADE in FYs 2019 and 2020 for deposit in the Account.
14. Defines classroom teacher.
Teachers' School Supply Tax Credit (Sec. 2-4)
15. Establishes a tax credit for TYs 2019 and 2020, capped at $150, for educational supplies and materials purchased by a qualified schoolteacher and used in the teacher's classroom.
16. Specifies that the amount of the credit excludes supplies purchased with monies received from the Account.
17. Requires a schoolteacher to receive and spend the full amount of monies made available from the Account to qualify for the tax credit.
18. Permits a husband and wife who are both qualified schoolteachers and filing jointly to claim the tax credit separately.
19. Permits a five-year carryforward of the tax credit.
20. Requires any expenses of elementary and secondary schoolteachers deducted from Federal Adjusted Gross Income to be added to Arizona Gross Income if a tax credit is claimed for the same expenses.
21. Defines a qualified schoolteacher as a K-12 teacher.
22. Contains a purpose statement.
Miscellaneous (Sec. 6)
23. Contains a delayed repeal date of June 30, 2021 for the Account and the tax credit.
a. Specifies that the repeal does not affect any carryover of the credit.
In calculating Federal Adjusted Gross Income, certain expenses of elementary and secondary schoolteachers may be deducted. The expenses cannot exceed $250 and must be paid or incurred by an eligible educator in connection with books, supplies, computer equipment and other equipment and supplementary materials used in the classroom (IRC § 62(a)(2)(d)).
An eligible educator is a K-12 teacher, instructor, counselor, principal or aide in a school for at least 900 hours during a school year (IRC § 62(d)(1)(A)).
A tax credit is a dollar-for-dollar reduction in a taxpayer’s income tax liability. Tax credits are often
offered to incentivize some type of action from a taxpayer, such as creating new jobs, investing in
environmentally friendly technology or any other action deemed beneficial to the economy.
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Fifty-third Legislature HB 2377
Second Regular Session Version 4: House Engrossed
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