House of Representatives

HB 2465

charitable organization; tax credit

Sponsors: Representatives Anderson, Cooley: Dunbar, et al

DPA/se	Committee on Ways and Means
DPA/s/e	Caucus and COW
X	As Passed the House

HB 2465 allows taxpayers that do not item to take the welfare reform tax credits for charitable donations to organizations that provide services to TANF families.

History

Laws 1997, Chapter 300 (Welfare Reform) created a personal income tax credit of $200 for charitable cash donations made to charitable organizations that spend at least 50 per cent of their budget on services to Arizona residents who receive TANF (Temporary Assistance to Needy Families) or have low-incomes (defined as 150% FPL). The credit was allowed for only contributions that exceeded a prior year’s baseline contribution.

HB 2465 allows taxpayers that don’t itemize to take the credit.

Provisions

· Provides that taxpayers who do not itemize deductions may be eligible to take the charitable organization personal income tax credit enacted in the 1997 Welfare Reform Act. Currently, the tax credit is available only to those taxpayers that itemize deductions.

· Provides an effective date for tax years beginning after December 31, 2000.

Ways and Means Committee Amendment

The Ways and Means Committee adopted a same subject strike-everything amendment to the bill with the following provisions.

· Provides that taxpayers who do not itemize deductions may be eligible to take the charitable organization personal income tax credit enacted in the 1997 Welfare Reform Act.

· Provides an effective date for tax years beginning after December 31, 2000.

The Ways and Means Committee Amendment was adopted by the Committee of the Whole.

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44th Legislature Analyst Initials _______

Second Regular Session March 10, 2000

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