ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: FIN DPA 8-2-0-0 | 3rd Read 27-2-1-0

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SB 1116: tax credit; foster care organizations

Sponsor: Senator Livingston, LD 22

Committee on Ways & Means

Overview

Adjusts the dollar amounts of the tax credit for contributions to qualifying charitable organizations and qualifying foster care organizations according to the average annual change in the metropolitan Phoenix consumer price index (CPI).  Expands the definition of qualified individual.

History

Currently, a credit is allowed against taxes for contributions made to a qualifying charitable organization. The amount for this credit, not including the credit for contributions to a qualifying foster care charitable organization, is:

1) $400 for a single individual or a head of household; or

2) $800 for a married couple filing a joint return (A.R.S. § 43-1088).

A separate credit is allowed against taxes for contributions made to a qualified foster care charitable organization. The amount for this credit is:

1) $500 for a single individual or a head of household; or

2) $1,000 for a married couple filing a joint return (A.R.S. § 43-1088).

To be considered a qualified foster care organization for tax credit purposes, a foster care organization must:

1) Provide services to at least 200 qualified individuals; and

2) Spend at least 50% of its budget on services to qualified individuals (A.R.S. § 43-1088).

Provisions

1. Instructs the Department of Revenue to adjust the dollar amounts of the tax credit for contributions to qualifying charitable organizations according to the average annual change in the metropolitan Phoenix CPI for taxable years beginning Jan 1, 2023.  (Sec. 1)

2. Prohibits the dollar amounts for these credits from being lower than the amounts for the previous taxable year. (Sec. 1)

3. States that the revised dollar amounts shall be raised to the nearest whole dollar. (Sec. 1)

4. Changes the definition of qualified individual to include:

a) A person who is participating in an independent living program;

b) Any person who is participating in a transitional independent living program;

c) A person who is participating in an extended foster care program; and

d) A person who is under 27 years old and whose reason for leaving foster care is:

i. reaching 18 years of age;

ii. adoption or legal guardianship; or

iii. reunification at 14 or 15 years of age. (Sec. 1)

5. Contains a retroactivity clause. (Sec. 2)

6. Makes technical and conforming changes. (Sec. 1)

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10.                   SB 1116

11. Initials VP/ES        Page 0 Ways & Means

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