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

Checked against official source text during the last sync.

Arizona Federal Tax Credit Authorization for Scholarship Organizations

This bill allows Arizona to join a federal program that gives tax credits to people who donate money to certified scholarship organizations.

What This Bill Does

Elects the state of Arizona to participate in a specific federal tax credit program starting after December 31, 2026.
Requires the Department of Revenue to follow all federal rules and submit needed information to the U.S. Treasury Secretary.
Allows nonprofit organizations exempt from federal taxes or applying for exemption under section 501(c)(3) to apply for certification as scholarship granting organizations.
Mandates that the department creates a list of certified organizations, sends it to the U.S., and posts it on its website by January 1 each year.
Permits certified organizations to give scholarships for qualified elementary or secondary education expenses.

Who It Names or Affects

Individuals who make contributions to scholarship granting organizations
Nonprofit organizations seeking certification as scholarship grantors in Arizona
The Arizona Department of Revenue

Terms To Know

Federal tax credit (Section 25F): A federal program that allows individuals to receive a tax credit for qualified contributions to scholarship granting organizations.
Scholarship granting organization: A certified nonprofit group in Arizona that receives donations and gives money for student education expenses under this law.

Limits and Unknowns

The bill does not specify the exact dollar amount of tax credits or scholarships.
Participation in the program begins only after December 31, 2026.
Specific rules and forms for applying are to be created later by the department.

Bill History

2026-01-26 House
House second read
2026-01-22 House
House Rules: None
2026-01-22 House
House Education: None
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