SB 1496 — tax credit; qualifying charitable organizations

SenateHouse Engrossed Senate Bill tax credit;

qualifying charitable organizations State of Arizona Senate Fifty-seventh Legislature First Regular Session CHAPTER 257 SENATE BILL 1496 AN ACT AMENDING SECTION 43-1088, ARIZONA REVISED STATUTES;

"DIRECT" MEANS PROVIDING OR ALLOCATING MONIES OR FINANCIAL OR IN-KIND ASSISTANCE TO A CHARITABLE ORGANIZATION THAT IS EXEMPT FROM FEDERAL INCOME TAXATION UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE AND THAT DIRECTLY PROVIDES SERVICES TO RESIDENTS OF THIS STATE WHO RECEIVE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BENEFITS, TO LOW-INCOME RESIDENTS OF THIS STATE AND THEIR HOUSEHOLDS OR TO INDIVIDUALS WHO HAVE A CHRONIC ILLNESS OR PHYSICAL DISABILITY AND WHO ARE RESIDENTS OF THIS STATE.

The organization must DIRECT OR spend at least fifty percent of its budget on services to residents of this state who receive temporary assistance for needy families benefits, to low-income residents of this state and their - 3 - S.B.

1496 families benefits, to low-income residents of this state and their households or to individuals who have a chronic illness or physical disability and who are residents of this state.

(a) For a qualifying charitable organization, cash assistance, medical care, BEHAVIORAL HEALTH SERVICES, child care, food, clothing, shelter, job placement and job training servicesservices, WORKFORCE READINESS SERVICES, WORKFORCE DEVELOPMENT PROGRAMS or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state.

(b)FOR ForTHE aPURPOSES qualifyingOF fosterTHIS careSUBDIVISION: charitable organization, cash assistance, medical care, behavioral health services, child care, food, including snacks at the qualifying foster care A charitable organization's foster youth events EVENT, clothing, shelter, job placement AND JOB TRAINING 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(i) the"BEHAVIORAL purposesHEALTH ofSERVICES" thisHAS subdivisionTHE PARAGRAPH:SAME MEANING PRESCRIBED IN SECTION 36-401.

(i)(ii) (a)"JOB "BehavioralPLACEMENT healthAND services"JOB hasTRAINING" theINCLUDES sameWORK meaningACTIVITIES prescribedAS inDEFINED sectionIN 36-401.SECTION 46-101 AND ANY OTHER PREPARATION AND TRAINING USED TOWARD OBTAINING A HIGH SCHOOL EQUIVALENCY DIPLOMA.

(ii)(iii) (b)"WORKFORCE "CharacterDEVELOPMENT educationPROGRAM" program"MEANS meansANY anyPROGRAM programRECOGNIZED describedBY inTHE sectionWORKFORCE 15-719,ARIZONA subsectionCOUNCIL BPURSUANT thatTO isSECTION offered41-5401. by a qualifying foster care charitable organization.

(iii)(b) (c)For "Joba PLACEMENTqualifying ANDfoster JOBcare trainingcharitable services"organization, hascash assistance, medical care, behavioral health services, child care, food, including snacks at the samequalifying meaningfoster ascare INCLUDEScharitable vocationalorganization's andfoster technicalyouth preparationevents, asclothing, definedshelter, injob sectionplacement 15-781,services, WORKjob ACTIVITIEStraining ASservices, DEFINEDcharacter INeducation SECTIONprograms, 46-101workforce ANDdevelopment ANYprograms, OTHERsecondary PREPARATIONeducation ANDstudent TRAININGretention USEDprograms, TOWARDhousing OBTAININGor Afinancial HIGHliteracy SCHOOLservices EQUIVALENCYor DIPLOMA.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.

1496 (iv)(iii) (d)"Job "Normalcy"training meansservices" has the conditionsame ofmeaning experiencingas avocational typicaland childhoodtechnical bypreparation participating in activities that are age or developmentally-appropriate, as defined in 42 United States Code section 675.15-781.

(v)(iv) (e)"Normalcy" "Workforcemeans developmentthe program"condition meansof anyexperiencing programa recognizedtypical childhood by theparticipating workforcein Arizonaactivities councilthat pursuantare toage or developmentally-appropriate, as defined in 42 United States Code section 41-5401.675.

(v) "Workforce development program" means any program recognized by the workforce Arizona council pursuant to section 41-5401.

APPROVED BY THE GOVERNOR JULY 1, 2025.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 1, 2025.