Some credits automatically transfer from your federal return if you qualify. Arizona also offers several state-specific tax credits that may reduce your Arizona tax or increase your refund.
Refundable credits can increase your refund even if you do not owe Arizona tax.
Nonrefundable credits can reduce your Arizona tax to zero but generally cannot increase your refund. Some nonrefundable credits may be carried forward to future tax years if you cannot use the entire credit.
Listed below are some of the credits available on an Arizona return.
Property Tax Credit (Form 140PTC)
A refundable credit for eligible Arizona residents who paid property taxes on their Arizona residence or paid rent on taxable Arizona property.
You may qualify for this credit if you meet all of the following requirements:
- 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) benefits during the tax year.
- You were a full-year Arizona resident.
- You paid Arizona property taxes on your primary residence during the tax year, paid rent on your Arizona residence for the entire year, or otherwise met one of the special qualifying situations described in the Form 140PTC instructions.
- Your total household income was less than $3,751 if you lived alone, or less than $5,501 if you lived with others.
- No other member of your household has claimed the Property Tax Credit for the same tax year.
Note: Arizona Form 140EZ does not allow this credit. Taxpayers may claim this credit using Form 140PTC. If filing an Arizona income tax return, the credit can also be claimed with the return.
Credit for Solar Energy Devices (Form 310)
Arizona residents who are not claimed as a dependent by another taxpayer may qualify for this nonrefundable credit if they purchase and install a qualifying solar or wind energy device in a residence located in Arizona.
The credit is equal to 25% of the cost of the device and installation, up to a maximum credit of $1,000.
- The credit is available only for purchased systems.
- Leased systems and systems installed under a Power Purchase Agreement (PPA) do not qualify.
- If you cannot use the entire credit because your Arizona tax liability is too low, the unused amount may be carried forward for up to five consecutive tax years.
- Taxpayers must complete Arizona Form 310 and Arizona Form 301 to claim the credit.
Note: The credit for solar energy devices installed for commercial, industrial, or other nonresidential use has expired. Taxpayers with a valid carryforward from a prior year may continue to claim any remaining amount, subject to Arizona limitations.
Credit for Contributions to Qualifying Charitable Organizations (Form 321)
Individuals who make cash contributions to an Arizona Qualifying Charitable Organization (QCO) may qualify for a nonrefundable tax credit.
Qualifying organizations provide services to Arizona residents who receive TANF benefits, are low-income, or are children with chronic illnesses or physical disabilities.
- Contributions must be made to an organization certified by the Arizona Department of Revenue.
- Contributions made between January 1, 2026, and April 15, 2026 may be claimed on either the 2025 or 2026 Arizona return, if the organization is certified for the applicable year.
- The maximum credit for tax year 2025 is:
- $495 for Single, Married Filing Separate, and Head of Household filers.
- $987 for Married Filing Joint taxpayers.
- If you cannot use the entire credit because your Arizona tax liability is too low, the unused amount may be carried forward for up to five consecutive tax years.
- Taxpayers must complete Form 321 and Form 301 to claim the credit.
- Contributions claimed for this credit cannot also be claimed as an Arizona charitable deduction or as part of the Arizona increased standard deduction.
Credit for Contributions Made or Fees Paid to Public Schools (Form 322)
Individuals who make cash contributions or pay certain qualifying fees to Arizona public schools or charter schools may qualify for a nonrefundable tax credit.
Qualifying contributions and fees may include amounts paid for:
- Extracurricular activities
- Standardized testing and test preparation courses
- Character education programs
- CPR training
- Career and technical education certification assessments
- Certain school capital improvements and educational programs
Note: Qualifying fees paid directly to a public or charter school may qualify even if they were required for a student's participation in an activity or program.
For tax year 2025, the maximum credit is:
- $200 for Single and Head of Household filers.
- $400 for Married Filing Joint taxpayers.
Additional rules:
- Contributions or fees paid between January 1, 2026, and April 15, 2026 may be claimed on either the 2025 or 2026 Arizona return.
- If you cannot use the entire credit because your Arizona tax liability is too low, the unused amount may be carried forward for up to five consecutive tax years.
- Taxpayers must complete Form 322 and Form 301 to claim the credit.
- Contributions claimed for this credit cannot also be claimed as an Arizona charitable deduction or as part of the Arizona increased standard deduction.
Credit for Contributions to Private School Tuition Organizations (Form 323)
Individuals who make cash contributions to an Arizona-certified School Tuition Organization (STO) may qualify for a nonrefundable tax credit.
For tax year 2025, the maximum credit is:
- $769 for Single and Head of Household filers.
- $1,535 for Married Filing Joint taxpayers.
Additional rules:
- Contributions made between January 1, 2026, and April 15, 2026 may be claimed on either the 2025 or 2026 Arizona return.
- If you cannot use the entire credit because your Arizona tax liability is too low, the unused amount may be carried forward for up to five consecutive tax years.
- Taxpayers must complete Form 323 and Form 301 to claim the credit.
- Contributions in excess of the Form 323 limit may qualify for an additional credit on Form 348.
- Contributions cannot be designated for the direct benefit of your dependent, your child, or any specific student.
Credit for Contributions to Certified School Tuition Organization (Form 348)
Individuals who make cash contributions to an Arizona-certified School Tuition Organization (STO) may qualify for this nonrefundable tax credit for contributions that exceed the maximum amount allowed on Form 323.
- You must first claim the maximum allowable current-year credit on Form 323 before claiming a current-year credit on Form 348.
For tax year 2025, the maximum Form 348 credit is:
- $766 for Single and Head of Household filers.
- $1,527 for Married Filing Joint taxpayers.
Additional rules:
- Contributions made between January 1, 2026, and April 15, 2026 may be claimed on either the 2025 or 2026 Arizona return.
- If you cannot use the entire credit because your Arizona tax liability is too low, the unused amount may be carried forward for up to five consecutive tax years.
- Taxpayers must complete Form 348 and Form 301 to claim the credit.
- Contributions cannot be designated for the direct benefit of your dependent, your child, or any specific student.
Credit for Contributions to Qualifying Foster Care Charitable Organizations (Form 352)
Individuals who make cash contributions to an Arizona-certified Qualifying Foster Care Charitable Organization (QFCO) may qualify for a nonrefundable tax credit.
For tax year 2025, the maximum credit is:
- $618 for Single and Head of Household filers.
- $1,234 for Married Filing Joint taxpayers.
Additional rules:
- Contributions made between January 1, 2026, and April 15, 2026 may be claimed on either the 2025 or 2026 Arizona return.
- If you cannot use the entire credit because your Arizona tax liability is too low, the unused amount may be carried forward for up to five consecutive tax years.
- Taxpayers must complete Form 352 and Form 301 to claim the credit.
- Contributions to a QFCO cannot also be claimed on Form 321.
Credit for Donations to the Military Family Relief Fund (Form 340)
Individuals who make a qualified cash donation to the Arizona Military Family Relief Fund may qualify for a nonrefundable tax credit.
The fund provides financial assistance to eligible Arizona military members, veterans, and their families.
For tax year 2025, the maximum credit is:
- $200 for Single, Head of Household, and Married Filing Separate taxpayers.
- $400 for Married Filing Joint taxpayers.
Additional rules:
- The donation must be made directly to the Arizona Department of Veterans' Services (ADVS).
- You must receive an ADVS receipt showing the donation qualifies for the credit.
- The credit is limited to the amount donated, the annual credit limit, or your Arizona tax liability, whichever is less.
- There is no carryforward for this credit. Any unused credit is lost.
- Taxpayers must complete Form 340 and Form 301 to claim the credit.
- Contributions claimed for this credit cannot also be claimed as an Arizona deduction.
Important: Donations qualify only if accepted by ADVS within the statewide annual tax credit limit established by Arizona law. Once the statewide limit is reached, additional donations will not qualify for the credit.
Increased Excise Tax Credit (Form 140ET)
Eligible Arizona residents may qualify for a refundable credit for increased excise taxes paid. Taxpayers filing an Arizona income tax return (Forms 140, 140EZ, 140PY, or 140NR) claim the credit directly on their return. Taxpayers who are not required to file an Arizona income tax return and do not qualify for the Property Tax Credit may claim the credit using Form 140ET.
You may qualify if all of the following apply:
- You were an Arizona resident during the tax year.
- You have a Social Security Number (SSN) valid for employment.
- Your federal adjusted gross income was:
- $12,500 or less if Single.
- $12,500 or less if Married Filing Separate.
- $25,000 or less if Married Filing Joint.
- $25,000 or less if Head of Household.
- You are not claimed as a dependent by another taxpayer.
- You were not sentenced to a county, state, or federal prison for 60 days or more during the tax year.
Additional rules:
- The credit is limited to $100 per household.
- If another person in the household has already claimed the full $100 credit, no additional credit may be claimed.
- Dependents who are Arizona residents may increase the allowable credit calculation.
- Taxpayers filing Form 140ET must not also claim the credit on an Arizona income tax return or on Form 140PTC.
- To claim the credit on Form 140ET, the taxpayer must not be required to file an Arizona income tax return and must not qualify for the Property Tax Credit (Form 140PTC).
Credit for Taxes Paid to Another State (Form 309)
Taxpayers may qualify for a nonrefundable tax credit if they paid net income tax to another state or foreign country on income that was also taxed by Arizona.
- The credit applies only to income taxed by both Arizona and the other state or country during the same tax year.
- A separate Form 309 must be completed for each state or country for which a credit is claimed.
- Taxpayers claiming this credit must also complete Form 301, Nonrefundable Individual Tax Credits and Recapture.
- The credit applies only to net income taxes paid to another state or country.
- The credit cannot be claimed for city taxes, county taxes, penalties, or interest.
- Any unused credit cannot be carried forward or carried back to another tax year.
Note: 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.