Arizona Charitable Tax Credit Program
In 1998, the Arizona Charitable Tax Credit Program started under the name “Working Poor Tax Credit”. The program was initially designed to let taxpayers claim up to $200 in dollar-for-dollar state tax credits. However, the initial design required taxpayers to establish a "base year" of giving and only received a credit for donations above that historical baseline. In 2009, the restrictive “base year” was eliminated, and by 2013 the program grew to include certified charitable organizations; later, foster care organizations were added. Finally in 2016, the program was split into two categories: Qualifying Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs).
On average, 5%-7% of Arizona taxpayers proactively use the program each year, saving on their taxes while making a difference for qualified charities of their choice. The program annually estimates $109M+ in direct individual contributions towards qualified local nonprofit organizations. But it doesn’t stop there. The program has been credited with increasing public charity awareness. The Common Sense Institute, a 501(c)(3) charitable organization itself, estimates that “induced economic activity from direct & indirect donations that are linked to the Arizona Charitable Tax Credit Program” are closer to $335M-$486M annually.*
Tax credits are dollar-for-dollar cuts in your state tax liability. Under Arizona law, your dollar-for-dollar tax credit could be up to $506 for a single person, $1009 for a married couple filing jointly.
These donations not only serve those who initially donate but also provide a financed path for needed services, housing, and jobs for others. Giving back feels good and can provide life-altering differences for others.
Horses with Heart is a qualifying charity (QCO) in the Arizona Charitable Tax Credit Program. Your support serves our special needs community, Veterans, and first responders. The results of the Arizona Charitable Tax Credit Program aides us in providing recreational able-bodied programs and outreach for the community. Be a part of the process…be a member of a solution.
Remember to always consult your tax advisor to see how your HwH donation can benefit you.
