What Credits Are Available on My Arizona Return?

Some credits automatically carry over from your federal return if you qualify. Arizona also offers several state-specific tax credits that can reduce the amount of tax you owe or increase your refund.

Refundable credits can increase your refund even if you don’t owe any Arizona tax.

Nonrefundable credits can reduce your Arizona tax liability to zero, but generally won’t increase your refund. However, some nonrefundable credits can be carried forward and used in future years if you can’t use the full credit now. 

Below are some of the most common credits available on an Arizona resident return.

Property Tax Credit (Form 140PTC)

The Property Tax Credit is a refundable credit for qualifying Arizona residents who paid property taxes on their home or paid rent on taxable Arizona property.

You may qualify if all of the following apply:

1. You (or your spouse if filing jointly) were age 65 or older by December 31 of the tax year, or received Title 16 Supplemental Security Income (SSI).
2. You were a full-year Arizona resident.
3. You paid Arizona property taxes on your primary residence, paid rent on taxable Arizona property, or met another qualifying situation described in the Form 140PTC instructions.
4. Your total household income was:
   • Less than $3,751 if you lived alone, or
   • Less than $5,501 if you lived with others.
5. No one else in your household claimed the credit for the same year.

Important

• Form 140EZ does not allow this credit.
• If you're filing an Arizona income tax return, you can claim the credit directly on your return or by filing Form 140PTC.

Credit for Solar Energy Devices (Form 310)

Arizona offers a nonrefundable credit for residents who purchase and install qualifying solar or wind energy devices in an Arizona residence.

The credit equals:

• 25% of eligible costs
• Up to a maximum credit of $1,000

Additional rules:

• The system must be purchased, not leased.
• Systems installed through a Power Purchase Agreement (PPA) do not qualify.
• Unused credit may be carried forward for up to five years.
• Form 310 and Form 301 are required to claim the credit.

Credit for Contributions to Qualifying Charitable Organizations (Form 321)

Arizona provides a nonrefundable credit for cash contributions to certified Qualifying Charitable Organizations (QCOs). These organizations serve low-income individuals, recipients of TANF benefits, or children with chronic illnesses or physical disabilities.

For tax year 2026, contributions made between January 1, 2027, and April 15, 2027 may generally be claimed on either your 2026 or 2027 Arizona return if the organization qualifies for the applicable year. Based on the Arizona credit structure reflected in the instructions, taxpayers should verify the annual limits published by Arizona before filing.

Additional rules:

• Contributions must be made to an Arizona-certified QCO.
• Unused credits may be carried forward for up to five years.
• Form 321 and Form 301 are required.
• Contributions claimed for this credit cannot also be used for an Arizona charitable deduction or increased standard deduction.

Credit for Contributions Made or Fees Paid to Public Schools (Form 322)

You may qualify for a nonrefundable credit if you make cash contributions or pay qualifying fees to an Arizona public or charter school.

Qualifying expenses may include:

• Extracurricular activities
• Standardized testing and test preparation
• Character education programs
• CPR training
• Career and technical education certification assessments
• Certain educational programs and school improvements

Unused credits may generally be carried forward for up to five years. Form 322 and Form 301 are required.

Credit for Contributions to Private School Tuition Organizations (Form 323)

Arizona allows a nonrefundable credit for cash contributions to certified School Tuition Organizations (STOs). STOs provide scholarships to eligible students attending private schools.

Important rules include:

• Contributions may generally be claimed in either of two tax years if made during the allowable carryover period before the filing deadline.
• Unused credits can be carried forward for up to five years.
• Form 323 and Form 301 are required.
• Contributions cannot be designated for a specific student or dependent.

Credit for Contributions to Certified School Tuition Organizations (Form 348)

If your STO contribution exceeds the amount allowed on Form 323, you may qualify for an additional nonrefundable credit on Form 348.

To claim this credit:

• You must first claim the maximum allowable Form 323 credit.
• Unused credits may be carried forward for up to five years.
• Form 348 and Form 301 are required.

Credit for Contributions to Qualifying Foster Care Charitable Organizations (Form 352)

Cash donations to certified Qualifying Foster Care Charitable Organizations (QFCOs) may qualify for a nonrefundable credit. 

Additional rules:

• Unused credits may be carried forward for up to five years.
• Form 352 and Form 301 are required.
• Donations claimed on Form 352 cannot also be claimed on Form 321.

Credit for Donations to the Military Family Relief Fund (Form 340)

Taxpayers who make qualified donations to Arizona's Military Family Relief Fund may qualify for a nonrefundable credit. The fund provides financial assistance to eligible Arizona military members, veterans, and their families. 

Key points:

• Donations must be made directly to the Arizona Department of Veterans' Services.
• You must receive a qualifying receipt.
• There is no carryforward for unused credit.
• Form 340 and Form 301 are required.

Increased Excise Tax Credit

The Increased Excise Tax Credit is a refundable credit available to certain low-income Arizona residents. 

You may qualify if:

• You were an Arizona resident.
• You have a valid Social Security Number for employment purposes.
• Your federal adjusted gross income was:
  • $12,500 or less if Single or Married Filing Separately.
  • $25,000 or less if Married Filing Jointly or Head of Household.
• No one else claims you as a dependent.
• You were not incarcerated for 60 days or more during the tax year.

Additional rules:

• The credit is limited to $100 per household.
• Additional qualifying Arizona-resident dependents may increase the calculation.
• The credit may not be claimed more than once per household.

Credit for Taxes Paid to Another State or Country (Form 309)

Arizona provides a nonrefundable credit when income is taxed by both Arizona and another state or foreign country. Taxpayers claiming the credit for taxes paid to another foreign country must complete Form 309 even if they were not required to complete federal Form 1116.

To qualify:

• The same income must be taxed by both jurisdictions during the same tax year.
• A separate Form 309 is required for each state or country.
• The credit applies only to net income taxes, not city taxes, penalties, or interest.
• Unused credit cannot be carried forward or carried back.

Access Credits

Program Pathway

• State Section
• Arizona Return
• Credits

Arizona Credit Tip

Many Arizona credits require both the individual credit form and Form 301 (Nonrefundable Individual Tax Credits and Recapture). Be sure to keep donation receipts, proof of payment, and any supporting documentation for your records.