AZ HB2459

Allows a tax credit of $5,000 for each qualified foster child for taxpayers who serve as foster parents for at least six consecutive months during the taxable year.

Qualified foster children must be placed by the Department of Child Safety and meet one of three criteria: at least ten years old, a sibling of another foster child in the same home, or requiring special care due to physical, mental, or emotional needs or delinquency adjudication.

Unused credits may be carried forward for up to five consecutive taxable years to offset future tax liability.

Co-owners of foster homes, including partners and S corporation shareholders, may claim only their pro rata share of the credit based on ownership interest, with total credits capped at the amount allowed for a sole owner.

Adds section 43-1075 to Arizona Revised Statutes and amends the income tax credit review schedule to include this credit in the years ending in 0 and 5.