posted June 23, 2016

SB 1216: Charitable Tax Credit Donation Amounts

by Jim D. Rebenar, Audit Manager

On May 6, 2016, Arizona Governor Doug Ducey signed Senate Bill 1216, effectively doubling the amount that individuals can claim in tax credits for donations to charities. Previously, individuals could contribute up to $200 and married couples up to $400 for organizations that help the working poor as part of the Arizona Charitable Tax Credit.

Organizations that qualify under this tax credit provide services such as cash assistance, medical care, child care, food, clothing, shelter, job placement, and job training to the needy. Since it was created in 1997, the Charitable Tax Credit has undergone several changes, but the amount that individuals and married couples may contribute and receive a credit for had not been changed since 2006.

Under the new law, individuals can now make a donation up to $400, and married couples can contribute up to $800 while still receiving the credit, in hopes to provide additional funding for charitable organizations that provide much needed services to low-income families and communities.

Along with the increase to the Charitable Tax Credit limits, the bill has also increased the amounts that can be contributed to foster care charitable organizations. Previous statute amounts were $400 for an individual and $800 for married couples. This has now gone up to $500 and $1,000 respectively.


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