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SB1142 - 572R - S Ver
Senate Engrossed
federal tax credit;
authorization; scholarships
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1142
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