SB 1496 Arizona Senate · 57th Legislature - First Regular Session

tax credit; qualifying charitable organizations

SB 1496 creates two separate state tax credits for Arizona taxpayers who donate to qualifying charitable organizations. It allows credits of up to $400 ($800 for married couples) for donations to general charitable groups, and up to $500 ($1,000 for married couples) for donations specifically to foster care organizations. To qualify, organizations must certify they serve low-income residents, foster care recipients, or individuals with chronic illnesses/disabilities, and must confirm they do not support abortion services. The credit amounts automatically adjust annually based on Phoenix area inflation starting in 2023. Taxpayers must submit donation details to the state, and the Department of Revenue will maintain a public list of certified organizations.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Mar 2025

Senate Passage

Jun 2025

House Passage

Jun 2025

Signed into Law

Jul 2025

Introduced Feb 4, 2025 Signed Jul 1, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

Senate Engrossed Version → Chaptered Version · 4 edits

MODERATE

The bill was formally enacted into law and underwent several technical formatting corrections, including fixing a numbering error in the definition of 'Direct' assistance and removing redundant text from the 'Services' definition. The core policy regarding income tax credits for charitable contributions remains substantively unchanged, with the only significant addition being the formal approval date of July 1, 2025.

Scope change

The bill's scope remains focused on amending Arizona Revised Statutes section 43-1088 regarding income tax credits for contributions to qualifying charitable organizations.

TECHNICAL

Corrected a numbering error where the definition of 'Direct' assistance was duplicated and mislabeled as '1. 2.' instead of just '1.'

Removed redundant and repetitive text regarding 'job training services' and 'job placement' from the definition of 'Services' to improve clarity

Reordered the definition of 'Services' to list the general charitable organization criteria before the specific foster care organization criteria

TIMELINE

Added formal enactment dates, noting the bill was approved by the Governor and filed with the Secretary of State on July 1, 2025

Introduced Version → House Engrossed Version · 6 edits · Jun 27, 2025

MODERATE

This bill updates Arizona's charitable contribution tax credit statute by adding new requirements for organizations to certify they do not provide abortion services or funding, expanding the definition of qualifying organizations, and clarifying what services count toward the 50% budget requirement. The changes introduce stricter compliance standards for organizations seeking tax credit eligibility while maintaining existing credit amounts and carry-forward provisions.

Scope change

The bill expands the scope of qualifying organizations by adding specific exclusions related to abortion services and clarifies service definitions for both general charitable and foster care organizations.

REQUIREMENT

New certification requirement added that qualifying charitable organizations must state they do not provide, pay for, or provide coverage of abortions and do not financially support entities that do.

ENFORCEMENT

New provision requiring the Department of Revenue to review written certifications, notify organizations of determinations, and make a public list of qualifying charitable organizations available.

DEFINITION

Added new definitions for 'Direct', 'Qualified individual', 'Qualifying charitable organization', 'Qualifying foster care charitable organization', and 'Services' with expanded descriptions for foster care organizations.

Added specific definition for 'Qualified individual' including foster children, independent living program participants, transitional independent living program participants, extended foster care program participants, and youth under 27 leaving foster care for specific reasons.

Modified 'Services' definition to include additional items for qualifying foster care charitable organizations such as character education programs, secondary education student retention programs, housing, and financial literacy services.

ELIGIBILITY

Expanded eligibility criteria for qualifying foster care charitable organizations to require providing services to at least 200 qualified individuals annually and spending at least 50% of budget on those individuals.

Floor votes · Senate Jun 27, 2025 · House Jun 24, 2025

How they voted

24–5

Passed · 1 other

Total votes 30

Jun 27, 2025

D Democratic13

8 Yea 5 Nay

61% Yea

R Republican17

16 Yea 1

94% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jul 1, 2025

Signed into law

Signed by Governor

executive

Jun 27, 2025

Upper · Passed

PASSED

upper

Jun 24, 2025

Lower · Passed

PASSED

lower

Jun 18, 2025

Lower · Passed

DPA

lower

Mar 26, 2025

Lower · Passed

lower

Feb 26, 2025

Upper · Passed

PASSED

upper

Feb 25, 2025

Upper · Passed

DPA

upper

Feb 10, 2025

Upper · Passed

upper

1 primary · 0 co-sponsors