This bill proposes to amend the Arizona Revised Statutes by adding a new chapter dedicated to scholarship granting organizations. It establishes that Arizona will participate in the federal tax credit program for individuals who contribute to these organizations, as outlined in section 25F of the Internal Revenue Code. The bill mandates that the state comply with federal laws to maintain eligibility for this tax credit starting from taxable years after December 31, 2026, and requires the department to submit necessary information to the U.S. Secretary of the Treasury.

Additionally, the bill outlines the process for nonprofit organizations to apply for certification as scholarship granting organizations. It specifies that the department must certify these organizations based on compliance with federal requirements and maintain a list of certified organizations, which must be submitted annually to the U.S. Secretary of the Treasury and posted on the department's website. Furthermore, it allows certified organizations to provide scholarships for eligible students for qualified education expenses, in accordance with federal law, starting after December 31, 2026.