ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: WM DP 7-2-1-0 | 3rd Read: 51-8-1-0

Senate: FIN DPA 9-1-0-0 | 3rd Read 23-3-4-0

Final Read: 48-2-10-0

HB 2693: tax credit; charitable organizations; adjustment

Sponsor: Representative Toma, LD 22

Transmitted to Governor

Overview

Requires the Department of Revenue (DOR) to adjust the dollar amounts for the tax credit for contributions to qualifying charitable organizations according to the average annual change in the metropolitan Phoenix consumer price index.

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal NoteHistory

Current statute states that a credit is allowed against taxes for contributions made to a qualifying charitable organization. The current credit amount for contributions made to a qualifying charitable organization, not including qualifying foster care charitable organizations, is:

1)   $400 for a single individual or a head of household; or

2)   $800 for a married couple filing a joint return (A.R.S. § 43-1088).

A separate credit is allowed against taxes for contributions made to a qualified foster care charitable organization. The current credit amount for contributions made to a qualifying foster care charitable organization is:

1)   $500 for a single individual or a head of household; or

2)   $1,000 for a married couple filing a joint return (A.R.S. § 43-1088).

Provisions

1.   Instructs DOR to adjust the dollar amounts for the tax credit for contributions to qualifying charitable organizations according to the average annual change in the metropolitan Phoenix consumer price index for taxable years beginning Jan 1, 2023. (Sec. 1)

2.   Establishes that the revised dollar amounts shall be raised to the nearest whole dollar. (Sec. 1)

3.   States that the dollar amounts may not be lower than the amounts for the previous taxable year. (Sec. 1)

4.   Revises the definition of charitable organization to require such organization to be a 501(c)(3) or to be a community action agency as defined in federal law. (Sec. 1)

5.   Expands the definition of qualified individual in relation to foster care. (Sec. 1)

6.   Adds a definition for services as related to qualifying foster care charitable organizations. (Sec. 1)

7.   Contains a retroactivity clause of January 1, 2022. (Sec. 2)

8.   Makes conforming changes. (Sec. 1)

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12.                    HB 2693

13.  Initials VP/ES/NM Page 0 Transmitted

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