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HOUSE BILL 2286
CHAPTER 80
CHANGES TO THE CREDIT FOR CONTRIBUTIONS TO QUALIFYING CHARITABLE ORGANIZATIONS
A.R.S. §43‐1088
The individual income tax credit is for voluntary cash contributions made by the taxpayer during the taxable year to a qualifying charitable organization of up to $200 in any taxable year for a single individual or a head of household and up to $400 in any taxable year for a married couple filing a joint return. There is a 5‐year carry forward.
The credit can only be taken if the taxpayer itemizes deductions in the taxable year. There is no longer any baseline amount, 1996 or otherwise. If the taxpayer donates money to the qualified charity and itemizes their deductions, they are eligible to take the credit.
The definition of a qualifying charitable organization has been expanded. This still has to be a 501(c) (3) organization or a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code section 9901. The organization must spend at least 50% of its budget on services to Arizona residents who receive temporary assistance for needy families or low income Arizona residents and their households OR TO CHRONICALLY ILL OR PHYSICALLY DISABLED CHILDREN WHO ARE ARIZONA RESIDENTS. Chronically ill or physically disabled is defined in section 36‐262 as children who are under 21 years of age and whose primary diagnosis is a severe physical condition which may require ongoing medical or surgical intervention. Services to residents means 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.
ADOR shall review each written certification and determine if the organization meets the criteria to be considered a qualifying charitable organization. ADOR shall notify the organization of its determination. ADOR may periodically request recertification from the organization.
All charitable organizations that have previously submitted a written certification must send ADOR another written certification containing all the information required above. An organization that fails to recertify: