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HB2553 • 2026

federal tax credit; authorization; scholarships..

HB2553 - federal tax credit; authorization; scholarships..

Education Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Michael Way, Lisa Fink, Matt Gress, Chris Lopez, Justin Wilmeth
Last action
2026-01-26
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The bill does not provide specific details on how much tax credit individuals will receive for their donations.

Federal Tax Credit for Scholarships

HB2553 allows Arizona residents to receive a tax credit when they donate money to scholarship organizations that help students pay for school, starting from December 31, 2026.

What This Bill Does

  • Arizona decides to participate in the federal tax credit program for individuals who contribute to scholarship granting organizations.
  • The state's department of revenue must follow all IRS rules and regulations to ensure Arizona can take part in this tax credit program from December 31, 2026 onwards.
  • Nonprofit organizations in Arizona that are exempt or have applied for exemption under section 501(c)(3) of the Internal Revenue Code may apply to be certified as scholarship granting organizations by the state department.
  • Each year on January 1st, the state department will send a list of these approved scholarship groups to the federal government and post it on their website.

Who It Names or Affects

  • Arizona residents who donate money to scholarship organizations
  • Nonprofit organizations in Arizona that help students pay for school

Terms To Know

Scholarship granting organization
A nonprofit group that gives scholarships to students.
Tax credit
An amount of money a person or business can subtract from the taxes they owe.

Limits and Unknowns

  • The bill does not specify how much tax credit people will get for their donations.
  • It is unclear what happens if Arizona decides to stop participating in this federal program after joining it.

Bill History

  1. 2026-01-26 House

    House second read

  2. 2026-01-22 House

    House Rules: None

  3. 2026-01-22 House

    House Education: None

  4. 2026-01-22 House

    House first read

Official Summary Text

HB2553 - federal tax credit; authorization; scholarships..

Current Bill Text

Read the full stored bill text 
HB2553 - 572R - I Ver

REFERENCE TITLE:
federal tax credit; authorization; scholarships..

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2553

Introduced by

Representatives
Way: Fink, Gress, Lopez, Wilmeth

AN
ACT

amending title 43, Arizona Revised
Statutes, by adding chapter 18; relating to scholarship organizations.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

START_STATUTE
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.
END_STATUTE

START_STATUTE
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.
END_STATUTE

START_STATUTE
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.
END_STATUTE