Plain English Breakdown
The official status indicates the bill was vetoed; it is not currently effective unless a legislative override occurs.
SB1142: Federal Tax Credit and Scholarship Program
This bill would let Arizona join a federal program that gives tax credits for donations to certified scholarship groups, which then give money to students.
What This Bill Does
- Elects the state of Arizona to participate in a specific federal tax credit program under section 25F of the Internal Revenue Code.
- Allows individuals who make qualified contributions to certified organizations to receive this federal tax credit.
- Requires the department to certify nonprofit groups that meet federal rules as scholarship granting organizations.
- Mandates the department to create and publish an annual list of these certified organizations online by January 1 each year.
- Permits certified organizations to give scholarships for elementary or secondary education expenses starting after December 31, 2026.
Who It Names or Affects
- Individuals who make qualified contributions to scholarship granting organizations
- Nonprofit organizations seeking certification as scholarship granters
- Students eligible for scholarships covering school-related costs
- The state department responsible for administering the program
Terms To Know
- Federal tax credit
- A reduction in taxes owed to the federal government based on qualified donations made.
- Scholarship granting organization
- A certified nonprofit group that receives donations and gives scholarships to students for education expenses.
Limits and Unknowns
- The bill was vetoed by the governor, so it may not become law unless lawmakers override the veto.
- The program only begins for tax years starting after December 31, 2026.
- Scholarships are limited to expenses allowed under federal law.