This bill proposes to amend current statutes by adding a new chapter to Title 43 of the Arizona Revised Statutes, specifically focusing on scholarship granting organizations (SGOs). The new provisions will 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. The Arizona Department of Revenue (ADOR) will be required 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 outlines the certification process for nonprofit organizations seeking to become SGOs, mandating that ADOR certify these organizations based on federal requirements. It also requires ADOR to submit an annual list of certified SGOs to the U.S. Secretary of the Treasury and to post this list on its official website. Furthermore, ADOR will need to adopt necessary rules and procedures for administering these certifications. The bill allows certified SGOs to provide scholarships for qualified education expenses starting January 1, 2027, in accordance with federal law.