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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: FIN DP 4-3-0-0 | 3rd Read DPA 18-10-2-0-0House: WM DP 5-2-0-2 | 3rd Read 37-18-5-0 Final Read: 24-5-1-0 | Chapter 257 |
SB 1496: tax credit; qualifying charitable organizations
Sponsor: Senator Mesnard, LD 13
Signed by the Governor
Overview
Modifies the definition of services for qualifying charitable organizations (QCO) for the purposes of the individual income tax credit for contributions to QCO's.
History
A QCO is defined as a charitable organization that is exempt from federal income taxation under section 501(c)(3) of the internal revenue code or is a designated action agency that receives community services block grant program monies. The charitable organization must spend at least 50% of its budget on services to Arizona residents who receive temporary assistance for needy families (TANF), are low-income or have a chronic illness or physical disability. A QFCO is a QCO which provides services to at least 200 qualified individuals and spends at least 50% of its budget on services to qualified individuals in Arizona.
Services is defined for QCO's as cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in Arizona. For QFCO's, services is defined as cash assistance, medical care, behavioral health care, child care, food, including snacks at the qualifying foster care charitable organization's foster youth events, clothing, shelter, job placement services, job training services, character education programs, workforce development programs, secondary education student retention programs, housing or financial literacy services or any other assistance that is reasonably necessary to meet basic needs or provide normalcy and that is provided and used in Arizona.
In tax year 2025, the individual income tax credit for voluntary cash contributions is not to exceed: 1) $618 for single individuals and heads of household or $1,234 for married couples filing jointly for QFCO's; and 2) $495 for single individuals and heads of household or $987 for a married couple filing jointly for QCO's. A taxpayer may contribute to either or both QCO's and QFCO's and claim a tax credit for either or both credits (A.R.S. § 43-1088).
Provisions
1. Modifies the definition of QCO to require the QCO to direct or spend at least 50% of its budget on services to state residents who receive TANF, are low-income or individuals with a chronic illness or physical disability. (Sec. 1)
2. Defines Direct. (Sec. 1)
3. Modifies the definition of services as it relates to QCO's to include behavioral health services, workforce readiness services and workforce development programs. (Sec. 1)
4. Defines behavioral health services, job placement and job training and workforce development programs. (Sec. 1)
5. Makes technical and conforming changes. (Sec. 1)
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9. SB 1496
10. Initials VP/DD Page 0 Signed by the Governor
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