federal tax credit; authorization; scholarships

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What Changed

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• Mar 31, 2026
  DP

  Houseinformal-passage
• Apr 6, 2026
  PASSED

  Housepassagereading-3
• Apr 6, 2026
  Transmit to Senate

  House
• Apr 7, 2026
  Transmit to Governor

  Office of the Governorexecutive-receipt
• Apr 12, 2026
  Vetoed by Governor

  Office of the Governorexecutive-veto

Roll-Call Votes

• Passed

  passagepass

  Senate · Feb 24, 2026

  16 yes11 no0 other0 absent0 excused3 not voting

• do pass

  committee-passagefail

  Senate · Feb 24, 2026

  0 yes0 no0 other0 absent0 excused0 not voting

• do pass

  committee-passagefail

  House · Mar 31, 2026

  0 yes0 no0 other0 absent0 excused0 not voting

• Passed

  passagepass

  House · Apr 6, 2026

  33 yes26 no0 other0 absent0 excused1 not voting

Documents

• HOUSE SUMMARY: 03/09/2026 Ways & Means

  HTML →

• HOUSE SUMMARY: 03/12/2026 Caucus & COW

  HTML →

• HOUSE SUMMARY: 04/21/2026 Vetoed

  HTML →

• SENATE FACT SHEET: 01/22/2026 FIN

  HTML →

• SENATE FACT SHEET: 04/20/2026 FIN As Vetoed

  HTML →

• Governor's Letter

  PDF →

Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 43, Arizona Revised Statutes, is amended by adding
chapter 18, to read:
CHAPTER 18
SCHOLARSHIP GRANTING ORGANIZATIONS
ARTICLE 1. GENERAL PROVISIONS
43-1801. State election to participate; federal tax credit
for    individual    contributions  to   scholarship
granting organizations
A. THIS STATE ELECTS TO PARTICIPATE IN THE FEDERAL TAX CREDIT
ESTABLISHED BY SECTION 25F OF THE INTERNAL REVENUE CODE FOR INDIVIDUALS
WHO MAKE QUALIFIED CONTRIBUTIONS TO SCHOLARSHIP GRANTING ORGANIZATIONS.
B. THE DEPARTMENT SHALL COMPLY WITH ALL FEDERAL LAWS AND
REGULATIONS TO ADMINISTER THE FEDERAL TAX CREDIT ESTABLISHED BY SECTION
25F OF THE INTERNAL REVENUE CODE TO ENSURE THIS STATE IS ELIGIBLE TO
PARTICIPATE IN TAXABLE YEARS BEGINNING FROM AND AFTER DECEMBER 31, 2026
AND ANNUALLY SUBMIT ALL OF THE REQUIRED INFORMATION TO THE UNITED STATES
SECRETARY OF THE TREASURY FOR PARTICIPATION.
43-1802. Scholarship granting organizations; certification;
list; rules
A. A NONPROFIT ORGANIZATION IN THIS STATE THAT IS EXEMPT OR THAT
HAS APPLIED FOR EXEMPTION FROM FEDERAL TAXATION UNDER SECTION 501(c)(3) OF
THE INTERNAL REVENUE CODE MAY APPLY TO THE DEPARTMENT FOR CERTIFICATION AS
A SCHOLARSHIP GRANTING ORGANIZATION, AND THE DEPARTMENT SHALL CERTIFY THAT
THE SCHOLARSHIP GRANTING ORGANIZATION MEETS THE REQUIREMENTS OF SECTION
25F OF THE INTERNAL REVENUE CODE AND THE APPLICABLE REGULATIONS OR
GUIDANCE ISSUED BY THE UNITED STATES SECRETARY OF THE TREASURY.
B. ON OR BEFORE JANUARY 1 OF EACH YEAR, THE DEPARTMENT SHALL:
1. SUBMIT TO THE UNITED STATES SECRETARY OF THE TREASURY A LIST OF
THE SCHOLARSHIP GRANTING ORGANIZATIONS THAT ARE CERTIFIED PURSUANT TO THIS
SECTION AND THAT ARE LOCATED IN THIS STATE.
2. POST THE LIST SUBMITTED PURSUANT TO PARAGRAPH 1 OF THIS
SUBSECTION ON THE DEPARTMENT'S OFFICIAL WEBSITE.
C. THE DEPARTMENT SHALL ADOPT RULES AND PUBLISH AND PRESCRIBE FORMS
AND PROCEDURES NECESSARY TO ADMINISTER THIS SECTION.
43-1803. Scholarships
FROM   AND  AFTER    DECEMBER   31,   2026,   A SCHOLARSHIP   GRANTING
ORGANIZATION THAT IS CERTIFIED BY THE DEPARTMENT AND ON THE LIST SUBMITTED
PURSUANT TO SECTION 43-1802, SUBSECTION B, PARAGRAPH 1 MAY PROVIDE
SCHOLARSHIPS TO ELIGIBLE STUDENTS FOR ANY QUALIFIED ELEMENTARY OR
SECONDARY EDUCATION EXPENSES TO THE EXTENT ALLOWED UNDER FEDERAL LAW.