Helpful information so you can take advantage of the Arizona Tax Credits:
Did you know Arizona taxpayers can redirect a portion of their state tax dollars to organizations providing help to others? Learn about each type of tax credit to determine your eligibility.
Frequently Asked Questions
Q. What is an Arizona Tax Credit?
A. Arizona provides several tax credits which allow AZ taxpayers to make charitable contributions and receive a dollar-for-dollar reduction in their AZ state tax liabilities. It’s not just a deduction, but an actual tax credit. With it, you can redirect what you owe in state taxes—all at no additional cost to you. In other words, your state tax money goes directly to the Arizona charities or schools of your choice!
For example: The Foster Care Tax Credit allows you to choose and donate to a qualifying charity, like Firm Foundation Youth Homes: Gigi’s Cottage, which facilitates foster care services for girls. You can donate up to $1,000 for joint filling or $500 for single filing. Consult your tax professional.
Q. Why participate in the AZ tax credit program?
A. We see needs in our community every day, and tax credits allow Arizona residents to choose how their tax dollars are spent. Instead of sending their tax dollars to the state’s general fund, taxpayers can send their tax dollars directly to causes they believe in. Making a tax-credit contribution, like withholding, is a way of paying your tax liability.
Q. Do I really get my money back dollar for dollar?
A. The State of Arizona credits that contribution towards your taxes owed! It is not just a deduction, but an actual tax credit.
Q. How do I qualify for any of the tax credits?
A. You qualify if you pay any amount in Arizona state income taxes. Claim the credit on your Arizona state income tax return with Form 321.
Q. Can I participate in more than one Arizona tax credit?
A. Yes, they are all separate credits, and you can claim them all on your tax return.
Q. How much can I give?
A. Each credit allows for a different contribution amount. You may contribute up to the maximum amount per your actual tax liability. Your tax liability is the amount of income taxes you are responsible for based on your income and tax. Consult your tax professional.
Q. Where do I find my tax liability?
A. You can find your tax liability on your most recent AZ income tax return, Form 140, line 48.
Q. What is the deadline for contributing for the 2022 tax year?
A. The deadline to contribute is April 18, 2023.
Q. Where can I get more information on Arizona tax credits?
A. Please visit the Arizona Department of Revenue website or contact your personal tax advisor.
Qualifying Organizations and Partners List
SBC partners with several Arizona non-profits that qualify for these tax credits, and the organizations that qualify are listed below. When you make a contribution to one of these partners, you not only benefit from a dollar-for-dollar tax credit, but you also help support the wonderful work they are doing to restore wholeness and demonstrate Jesus’ love and grace to the adults, children, and families they serve.
Please consider how you can make a difference in the lives of others by taking advantage of Arizona tax credits. Contact firstname.lastname@example.org or call 480.824.7243 with any further questions you may have on how to benefit our local community.
Homelessness & Vulnerable Families
Foster Care & Adoption Partners
Medical Care and Pro-Life Partners
Recovery & Prison Ministry Partners
School and Youth Partnerships