1 Extracurricular Tax Credit and Career Technical Student Organizations December 16, 2014 Ken Hicks

Review extracurricular tax credit rules Current practice overview Recommendation & concerns Overview 2

Extracurricular activities are defined as school sponsored optional activities that require enrolled students to pay a fee in order to participate. The activities must supplement the school’s education program. These activities may include: – Use of band uniforms – Use of equipment or uniforms for athletics – In-state or out-of-state trips that are solely for competitive events. Rules 3

Generally, any optional, noncredit, educational or recreational activities that supplement the education program of the school are considered to be extracurricular activities per A.R.S (24). Rules 4

A contributor can complete a form and mail or hand deliver a check to the District or by using a credit card or debit card online Must select a school and a program and identify the amount Payment is received and posted to the corresponding account for that school Current Practice 5

Earlier in the year, it was identified that not all elementary schools had the same option for online donations. That has been corrected. High schools were checked to ensure the same offerings were available to each school. Current Practice 6

For those Career Technical Student Organizations, the process for promoting donations is: Selecting Educational Competition or Field Trip and selecting the school. Then identify under subject, the activity to apply CTSO Current Practice 7

For those Career Technical Student Organizations, the process for accessing funds is: Utilize the corresponding account of the school and activity that the funds were posted to An accountant reviews the request and the criteria to ensure that the request is compliant with the extracurricular tax credit rules CTSO Current Practice 8

Career Technical academic offerings that are for credit are ineligible Some Career Technical activities can be eligible for extracurricular tax credit funds This creates confusion Issues 9

Continue to promote extracurricular tax credit programs including CTSO’s via Educational Competition and Field Trip activities Work to increase the flexibility of extracurricular tax credit funds Recommendation 10

Questions and Comments 11