AZ HB2627

Allows individual income tax credit of up to $200 for single filers and $400 for joint filers for voluntary cash contributions to qualifying charitable organizations.

Requires qualifying charitable organizations to be 501(c)(3) exempt entities or designated community action agencies and spend at least 50% of budget serving low-income residents, TANF recipients, or chronically ill/disabled children in Arizona.

Organizations must provide written certification to the Department of Revenue under penalty of perjury, including budget information and statement that they do not provide, pay for, or provide coverage of abortions.

Unused tax credits may be carried forward for up to 5 consecutive taxable years, and the credit is only available to taxpayers who itemize deductions.

Husband and wife filing separate returns may each claim only half the credit that would have been allowed on a joint return.