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Update on Public Comment for QCOs and QFCOs

June 2, 2022

In the current review-and-comment period for ADOR’s draft guidelines on the tax credit program for qualifying charitable organizations (QCOs) and qualifying foster care charitable organizations (QFCOs), the Department has become aware of some confusion over both the purpose of circulating the guidelines and the agency’s role in administering the program.

Since 20091, Arizona law has entrusted ADOR with the responsibility of administering the tax credit program according to the language of the statute enacted by the legislature. The Department does not take this duty lightly and endeavors to review all organizations with due care to ensure equitable and consistent application of the law.

Given the importance and significance of the QCO/QFCO program, ADOR’s decisions naturally draw the attention and focus of affected organizations. For this reason, the agency is pausing its notice and comment period to allow more time for additional stakeholder listening sessions and working groups before it circulates any additional working draft of the QCO/QFCO program guidelines. We will post additional updates and any public meetings scheduled on this topic and encourage you to regularly check ADOR’s website for the latest information.

The Department welcomes organizations that have already prepared written responses to the existing working draft to share them with our staff. , We appreciate every organization’s time and efforts to review and make written comments aimed at improving clarity for all affected parties. The Department will review and provide a written response to every written comment received and make any changes that will improve the process consistent within current statutory requirements.

Please direct written comments and inquiries (including requests to obtain the working draft of the QCO/QFCO guidelines) to Elaine Smith, Deputy Assistant Director, Office of Economic Research and Analysis, at [email protected]. Alternatively, if you wish to submit your comments by mail, you may submit your comments, addressed to the above contact, by mail to: Arizona Department of Revenue, 1600 W. Monroe St., Mail Code 4012, Phoenix, AZ 85007.


The enabling legislation dates back to 1998, but ADOR became responsible for certifying organizations in 2009.



Thursday, June 2, 2022