Tax Credits

It's important to determine your eligibility for tax credits before you file.

  • Income tax credits reduce tax liability.
  • Tax credits are either refundable or non-refundable.
  • Although non-refundable tax credits can never exceed a taxpayer’s tax liability, the majority of non-refundable tax credits allow the unused amounts to be carried forward to future years.
Contributions to QCOs and QFCOs

Claim Qualifying Charitable Organizations (QCOs) including Foster Care (QFCOs) tax credits on the Arizona personal income tax.

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Certification for QCOs and QFCOs

For Qualifying Charitable Organizations (QCOs) including Foster Care (QFCOs) to receive contributions eligible for the tax credit.

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Public School Tax Credits

Credits for donations made by taxpayers to public schools.

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Certification for STOs

For School Tuition Organizations to receive contributions eligible for the tax credit.

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Credits for Contributions to Certified STOs

Credits for donations made by taxpayers to Certified School Tuition Organizations.

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Other Tax Credits

Some tax credits may be claimed right on the form and some require additional documents.

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Credit Pre-Certification

A select number of credits require the department to pre-certify applicants to determine eligibility or to administer an aggregate dollar amount that can be claimed. Below, you will find links to the procedures and applications for these select credits.

  • Health Insurance Premium Tax Credit - individual or small business applications for Certificate of Eligibility for the Health Insurance Premium Tax Credit
  • Healthy Forest Production Tax Credit - individual or corporate income tax credit for healthy forest production.
  • Renewable Energy Production Tax Credit – individual or corporate income tax credit for the production of electricity using solar light, solar heat, wind or certain types of biomass.
  • Renewable Energy for Self-Consumption – individual or corporate income tax credit for the investment in new renewable energy facilities that produce energy for self-consumption by international operations centers.
  • University Research & Development Tax Credit – individual or corporate income tax credit for taxpayers that make basic research payments to a university under the jurisdiction of the Arizona Board of Regents. This credit can be taken in addition to the Credit for Increased Research Activities and is effective for taxable years beginning from and after December 31, 2012.

 

Contributions to Qualifying Charitable Organizations

There are two tax credits available to individual income taxpayers for charitable donations: one for donations to Qualifying Charitable Organizations and one for donations to Qualifying Foster Care Charitable Organizations. Individuals making cash donations made to these charities may claim these tax credits on their Arizona Personal Income Tax returns.

 

Investment in Qualified Small Business Credit

 

The Arizona Commerce Authority (ACA) administers the Qualified Small Business Capital Investment program. Income tax credits are equal to 30% or 35% of the investment amount and are claimed over a three year period.