Arizona Charitable Tax Credit (QCO)

What is the Arizona Charitable Tax Credit?

The Arizona Charitable Tax Credit lets you redirect state income tax you already owe to Qualifying Charitable Organizations (QCOs) serving low-income Arizonans. Every dollar you donate reduces your Arizona state tax liability by the same amount, up to the annual limit. Unlike a deduction, which only saves a percentage, a credit is a dollar-for-dollar offset.

Claim it on Arizona Form 321. You can donate any time from January 1 through April 15 of the following year and still apply it to the prior tax year, which gives you flexibility to adjust your giving based on your final liability.

How much can you donate?

These limits are the maximum credit you can claim, not a minimum. Donate any amount up to the limit and claim exactly what you gave. If your Arizona liability is less than your donation, the unused portion carries forward for up to five years.

How to claim the QCO credit

1. Donate by April 15 of the year after the tax year you're claiming. Keep the receipt — it must show the organization's Arizona QCO code.
2. File Arizona Form 321 with your state return. List the QCO code, the organization's name, and the donation amount.
3. Subtract the credit from your Arizona liability. If your liability is less than the credit, carry the remainder forward to next year's return.

Who qualifies as a QCO?

A QCO is a nonprofit that spends at least 50% of its budget on services for Arizona residents who are low-income, chronically ill, or physically disabled, or that serves children of those families. Qualifying organizations earn a QCO code from the Arizona Department of Revenue. Common QCOs include food banks, domestic violence shelters, homeless services, mentoring programs, and workforce development nonprofits.

Only donations to organizations with a current QCO code count for the credit. A general donation to a charity you like won't qualify unless that charity has earned the QCO designation. AZcredits lists only vetted QCOs with active codes.

Donate to an Arizona QCO today

Browse our vetted QCO partners or start a donation that splits across all four Arizona tax credit programs in a single transaction. You'll receive a separate tax-compliant receipt for each organization.