How must a school district use tax credit monies?
Districts must use tax credit monies for both the school and purpose intended by the taxpayer. The site council of the school that receives contributions that are not designated for a specific purpose shall determine how the contributions are used at the school site. To qualify for the tax credit, the purpose must be in support of character education programs (described in A.R.S. 15-719) or extracurricular activities. Extracurricular activities are defined in A.R.S. 15-342(24) as optional, noncredit, educational, or recreational activities which supplement the education program of the school, whether offered before, during, or after regular school hours. Extracurricular activities that are eligible for the tax credit are those school-sponsored activities that require enrolled students to pay a fee in order to participate, including fees for band uniforms, equipment or uniforms for varsity athletic activities, scientific laboratory materials, and in-state or out-of-state trips that are
