The Arizona Legislature has approved a bill to make the state’s tax credit programs for donations for private school scholarships more generous.
A House-approved bill goes to the governor after clearing the Senate Tuesday on a 21-7 vote.
The bill eliminates caps on corporate income tax credits on businesses’ contributions to student tuition organizations and increases the caps on individual income tax credits for donations by individuals and married couples. And it newly allows severance and liquor tax credits for donations to student tuition organizations.
The legislative budget staff estimates the bill would decrease state revenue by $17.2 million in the next fiscal year.
The Senate vote follows by one day a U.S. Supreme Court ruling that rejected a challenge to the individual income tax credits.