What is an Arizona Tax Credit?

They are state-authorized reductions in your Arizona income tax liability (taxes owed), designed by policy to encourage charitable giving, education support, military family relief, renewable energy investment, and more. Unlike itemized deductions, tax credits directly reduce the amount of tax you owe, dollar-for-dollar. All types of tax credits can all be used in combination in a single tax year.

What are QCOs and QFCOs?

Arizona QCOs and QFCOs are two categories of nonprofit organizations certified by the Arizona Department of Revenue (ADOR) to receive tax credits.

There is no minimum requirement. Any financial donation up to the allowable limit qualifies.

What charities are QCOs and QFCOs?

AZTaxCreditList.com has a searchable comprehensive list of QCOs and QFCOs can be viewed here or click either below.

Alternatively, ADOR maintains a PDF list of names and addresses that can be downloaded here.

How many taxpayers use charity donations tax credits?

Around 3.5M income tax returns are filed each year in Arizona. Of those returns, about 183,000 taxpayers claimed the QCO charity tax credit (about 5%). Only 41,000 claimed the QFCO tax credit on their returns (about 1%). Source: ADOR (Tax) Credit History Reports - November 2024 - see page 11

How do you claim/use these charity tax credit?

Donate to qualified charities, keep a receipt of record, not the five-digit charity code, and claim your charity tax credit using Form 321 (QCO) or Form 352 (QFCO) with your Arizona income tax return. Always consult your tax preparer for all tax advice.

Why should you use these tax credits?

This is a rare chance to align your tax dollars with your values—whether that’s youth services, housing, healthcare, or education.

• Support low-income families, children in foster care, people with disabilities or chronic illness, homeless individuals and domestic violence survivors; these organizations often operate more efficiently than government programs and are deeply embedded in Arizona communities.
• Donate up to April 15 and still apply the credit to the previous tax year.
• You don’t need to itemize your deductions—any taxpayer can claim these credits.
• If your donation exceeds your tax liability, the unused portion can be carried forward for up to five years, you never lose the benefit.
• It's the best feel wonderful deal in Arizona!

Arizona is one of the few states that provide tax credits for charitable donations.