What is a QCO Tax Credit Donation?
The Arizona Charitable Tax Credit is what is referred to as a nonrefundable income tax credit. The maximum allowable limit for the dollar-for-dollar tax credit match for a QCO varies each year. These tax credits mean taxpayers reduce their state tax burden at a dollar for dollar rate up to the maximum limits.
Although The Erik Hite foundation can only accept QCO Tax Credits, taxpayers can give to both a QCO and other tax credit programs to maximize their tax credit benefit in a given year. These tax credits mean taxpayers reduce their state tax burden at a dollar for dollar rate up to the maximum limits.
Key Guidelines for the Arizona Charitable Donation Tax Credit
- Only individuals may take advantage of the donation tax credit. Corporations, partnerships, and so on, do not qualify for the tax credit.
- All donations must be made with monetary funds. Material donations (e.g. cars, clothes, toys, etc.) and service donations do not qualify.
- Only donations given to Qualifying Charitable Organizations or Qualifying Foster Care Charitable Organizations which were certified by the state of Arizona will work with the Arizona Charitable Tax Credit. Donations given to non-qualifying organizations do not qualify.
- Of note, extra credits that are not used for tax obligations in one tax year can be carried over to future tax years. We will go into further detail on this later on!
Arizona Tax credit QCO campaign
Direct your Arizona Tax Credit to the Erik Hite Foundation.
