If enacted, this bill would amend current statutes by adding a new chapter to Title 43 of the Arizona Revised Statutes, specifically addressing scholarship granting organizations (SGOs). The bill would declare Arizona's election to participate in the federal tax credit for individuals making qualified contributions to SGOs, as established by section 25F of the Internal Revenue Code. It would require the Arizona Department of Revenue (ADOR) to comply with federal laws and regulations to administer this tax credit, ensuring eligibility for participation starting from taxable years after December 31, 2026.

Additionally, the bill would outline the certification process for nonprofit organizations seeking to become SGOs, mandating that ADOR certify these organizations based on federal requirements. It would also require ADOR to submit an annual list of certified SGOs to the U.S. Secretary of the Treasury and post this list on its official website. Furthermore, ADOR would be tasked with adopting necessary rules and procedures for administering the certification process. The bill would allow certified SGOs to provide scholarships for qualified education expenses starting January 1, 2027, in accordance with federal law.