The proposed bill, if enacted, would amend current statutes regarding qualifying charitable organizations (QCOs) and the services they provide for tax credit purposes. Specifically, it would modify the definition of a QCO to require that these organizations must "direct or spend" at least 50% of their budget on services for Arizona residents who receive Temporary Assistance for Needy Families (TANF) benefits, are low-income, or have chronic illnesses or disabilities. Additionally, the bill would eliminate the existing definition of "services" for QCOs and instead apply the broader definition currently used for qualifying foster care charitable organizations (QFCOs), which includes a wider range of assistance such as behavioral health services and job placement.

Furthermore, the bill introduces a new definition of "job training services" to encompass both job placement and training, while also including specific preparatory activities for obtaining a high school equivalency diploma. The bill also clarifies the meaning of "direct" in the context of financial assistance to QCOs and makes various technical and conforming changes to ensure consistency throughout the statute. Overall, these updates aim to enhance the effectiveness of tax credits for contributions to QCOs and broaden the scope of services that can qualify for such credits.

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