AZ SB1496

Establishes a tax credit for voluntary cash contributions to qualifying charitable organizations, with limits of $400 (single/head of household) or $800 (married filing jointly) per taxable year.

Creates a separate tax credit for contributions to qualifying foster care charitable organizations with higher limits of $500 (single/head of household) or $1,000 (married filing jointly) per taxable year.

Requires qualifying charitable organizations to spend at least 50 percent of their budget on services to residents receiving temporary assistance for needy families benefits, low-income residents, or individuals with chronic illness or physical disability.

Prohibits qualifying charitable organizations from providing, paying for, or providing coverage of abortions, or from financially supporting any entity that does so.

Allows unused tax credits to be carried forward for up to five consecutive taxable years and requires the Department of Revenue to adjust dollar amounts annually for inflation beginning in 2023.