individual income tax; credit; education

HB 4037 creates a new refundable education tax credit for Arizona taxpayers with qualifying children. The credit (up to 80% of the state's base support level) applies to children not enrolled in public school or scholarship programs for more than 50% of instructional days. Taxpayers can claim this credit starting tax year 2026, with excess credit paid as a refund. The bill also modifies income tax filing procedures to streamline forms for eligible taxpayers and requires electronic filing for tax preparers handling over 10 returns annually.