This bill proposes to amend Title 43 of the Arizona Revised Statutes by adding Chapter 18, which focuses on Scholarship Granting Organizations (SGOs). The new provisions 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) is tasked with ensuring compliance with federal laws and regulations to administer this tax credit, which will be available for taxable years starting January 1, 2027.

Additionally, the bill outlines the certification process for nonprofit organizations seeking to become SGOs, requiring ADOR to certify that these organizations meet federal requirements. It mandates that ADOR 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 is required to adopt necessary rules and procedures for administering the certification process. The bill allows certified SGOs to provide scholarships for qualified education expenses starting from January 1, 2027.