The proposed bill, if enacted, would amend current statutes regarding qualifying charitable organizations (QCOs) and the services they provide. Under the new law, the definition of a QCO would be updated to require that these organizations not only spend but also direct at least 50% of their budget towards 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 introduces a definition for "direct," which encompasses providing financial or in-kind assistance to a QCO.

Furthermore, the bill expands the definition of "services" for QCOs to include behavioral health services, workforce readiness services, and workforce development programs, while also clarifying the definitions of these new service categories. The language regarding the types of assistance that can be provided is modified to focus on meeting basic needs rather than immediate basic needs. The bill also makes 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 they can offer.

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