AZTO's 2019-2020 Application opens on March 18th. The 2018-2019 Application is closed. Learn More

IRS Regulation concerning Federal Deductibility of State Tax Credits

Is my Arizona tax credit contribution also eligible for a federal income tax deduction?

Donations made after August 27, 2018 may not be eligible for an Arizona state credit and a federal deduction per proposed amendments to regulations by the Internal Revenue Service.  Arizona donors are still eligible to receive a dollar-for-dollar state income tax credit.  Donations made on or prior to August 27, 2018 are potentially eligible for a federal tax deduction and state income tax credit.  Please consult your tax advisor to better understand your specific situation.


For more information, The Wall Street Journal has an article with further details.   Wall Street Journal Article, IRS Proposal 8-22-18

Department of Treasury, IRS Proposal IRS Publication, Deductibility 8-24-18