HB 2693 — tax credit; charitable organizations; adjustment

HouseSenate Engrossed House Bill tax credit;

adjustment State of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session CHAPTER 385 HOUSE BILL 2693 AN ACT AMENDING SECTION 43-1088, ARIZONA REVISED STATUTES;

"Qualifying foster care charitable organization" means a qualifying charitable organization THAT IS EXEMPT FROM FEDERAL INCOME TAXATION UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE OR IS A DESIGNATED COMMUNITY ACTION AGENCY THAT RECEIVES COMMUNITY SERVICES BLOCK GRANT PROGRAM MONIES PURSUANT TO 42 UNITED STATES CODE SECTION 9901 AND that each operating year provides services to at least two hundred qualified individuals in this state and spends at least fifty percent of its budget on services to qualified individuals in this state.

For the purposes of this paragraph, "qualified5. individual" means a foster child as defined in section 8-501 or a person who is under twenty-one years of age and who is participating in a transitional independent living program as prescribed by section 8-521.01.

"Qualified individual" means ANY OF THE FOLLOWING:

(a) A foster child as defined in section 8-501.

or - 3 - H.B.

2693 (b) A PERSON WHO IS PARTICIPATING IN AN INDEPENDENT LIVING PROGRAM AS PRESCRIBED IN SECTION 8-521.

(c) A person who is under twenty-one years of age and who is participating in a transitional independent living program as prescribed by section 8-521.01.

(d) A PERSON WHO IS PARTICIPATING IN AN EXTENDED FOSTER CARE PROGRAM AS PRESCRIBED IN SECTION 8-521.02.

(e) A PERSON WHO IS UNDER TWENTY-SEVEN YEARS OF AGE AND WHOSE REASON FOR LEAVING FOSTER CARE IS ANY OF THE FOLLOWING:

(i) REACHING EIGHTEEN YEARS OF AGE.

(ii) ADOPTION OR LEGAL GUARDIANSHIP AFTER REACHING FIFTEEN YEARS OF AGE.

(iii) REUNIFICATION AFTER REACHING FOURTEEN YEARS OF AGE.

"Services"6. means cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state.

-"Services" 3means: -

(a) FOR A QUALIFYING CHARITABLE ORGANIZATION, cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state.

(b) FOR A QUALIFYING FOSTER CARE CHARITABLE ORGANIZATION, CASH ASSISTANCE, MEDICAL CARE, BEHAVIORAL HEALTH SERVICES, CHILD CARE, FOOD, INCLUDING SNACKS AT THE QUALIFYING FOSTER CARE CHARITABLE ORGANIZATION'S FOSTER YOUTH EVENT, CLOTHING, JOB PLACEMENT SERVICES, JOB TRAINING SERVICES, CHARACTER EDUCATION PROGRAMS, WORKFORCE DEVELOPMENT PROGRAMS, SECONDARY EDUCATION STUDENT RETENTION PROGRAMS, HOUSING OR FINANCIAL LITERACY SERVICES OR ANY OTHER ASSISTANCE THAT IS REASONABLY NECESSARY TO MEET BASIC NEEDS OR PROVIDE NORMALCY AND THAT IS PROVIDED AND USED IN THIS STATE.

FOR THE PURPOSES OF THIS SUBDIVISION:

(i) "BEHAVIORAL HEALTH SERVICES" HAS THE SAME MEANING PRESCRIBED IN SECTION 36-401.

(ii) "CHARACTER EDUCATION PROGRAM" MEANS ANY PROGRAM DESCRIBED IN SECTION 15-719, SUBSECTION B THAT IS OFFERED BY A QUALIFYING FOSTER CARE CHARITABLE ORGANIZATION.

(iii) "JOB TRAINING SERVICES" HAS THE SAME MEANING AS VOCATIONAL AND TECHNICAL PREPARATION AS DEFINED IN SECTION 15-781.

(iv) "NORMALCY" MEANS THE CONDITION OF EXPERIENCING A TYPICAL CHILDHOOD BY PARTICIPATING IN ACTIVITIES THAT ARE AGE OR DEVELOPMENTALLY-APPROPRIATE, AS DEFINED IN 42 UNITED STATES CODE SECTION 675.

(v) "WORKFORCE DEVELOPMENT PROGRAM" MEANS ANY PROGRAM RECOGNIZED BY THE WORKFORCE ARIZONA COUNCIL PURSUANT TO SECTION 41-5401.

Sec.

2.

Retroactivity This act applies retroactively to taxable years beginning from and after December 31, 2021.

- 4 - H.B.

2693 APPROVED BY THE GOVERNOR JULY 6, 2022.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 6, 2022.

- 5 -