The proposed bill, if enacted, would amend current statutes regarding qualifying charitable organizations (QCOs) and the services they provide for tax credit purposes. It would modify the definition of a QCO to require that the organization must "direct or spend" at least 50% of its budget on services for Arizona residents who receive Temporary Assistance for Needy Families (TANF) benefits, are low-income, or have a chronic illness or physical disability. Additionally, the bill introduces a new definition of "direct," which encompasses providing or allocating financial or in-kind assistance to a QCO.

Furthermore, the bill eliminates the existing definition of "services" for QCOs and instead applies the broader definition used for qualifying foster care charitable organizations (QFCOs). This new definition includes a wider range of services such as behavioral health services, workforce readiness services, and job placement and training services, thereby expanding the types of assistance that can qualify for tax credits. The bill also makes technical and conforming changes to ensure consistency throughout the statute.

Statutes affected:
Introduced Version: 43-1088
Senate Engrossed Version: 43-1088
House Engrossed Version: 43-1088