Helping The Working Poor Tax Credit – aka Arizona QCO Tax Credit increases for 2025
Phoenix/Mesa/Scottsdale, Arizona — 11/25/25 — As the giving season and tax season approaches, Arizona residents are encouraged to take advantage of the Arizona Tax Credit Program for Qualifying Charitable Organizations (QCOs) (A.R.S. § 43-1088) to help support community needs. This program allows taxpayers to direct a portion of their state income tax obligation to nonprofits serving low-income and vulnerable individuals and receive 100% of the donation back on their state taxes not as a donation but as an actual tax credit.
In 1998 Arizona launches the “Working Poor Tax Credit,” aimed at encouraging donations to organizations assisting low-income families (limit in 1998 $200 Now $495 per person). Arizona’s charitable tax credit program has grown more over the last few decades to strengthen community support systems statewide: Today, thousands of Arizona taxpayers use the QCO tax credit to support nonprofits that deliver immediate and meaningful assistance to families and individuals in need. Jim Piscopo, Executive Director of Bridging AZ Furniture Bank says “It is like your donation is redirecting your state tax liability to support a nonprofit, I can’t imagine any one not taking advantage of how to spend their taxes”.
Arizona is one in a handful of only 11 states that offer some type of Charitable Giving Tax Credit. According to The Common Sense Institute of Arizona, in 2023 only 5%–7% of Arizona tax returns claim the QCO (and related QFCO) credits. That would mean roughly 93%–95% of Arizonans either are not aware of the program, don’t understand how it works, or assume the state is better equipped to address community needs—especially when it comes to supporting the working poor. 21% of Arizona residents (1.5 million people) are below 150% of the federal poverty line.
How the QCO Tax Credit Works
The QCO credit provides a dollar-for-dollar reduction in your Arizona state income tax liability, up to:
- $495 for individuals
- $987 for married couples filing jointly
Taxpayers may claim the QCO credit even if they also participate in foster care or school tax credits, making it one of the most flexible charitable giving incentives in the state.
“Arizona’s QCO tax credit empowers residents to support organizations improving the lives of our most vulnerable neighbors,” said Jim Piscopo, of Bridging AZ. “It gives taxpayers a direct role in strengthening communities—while reducing their tax burden.” Jim goes on to say “a single tax credit of $495 could help us furnish an entire apartment including a new bed for a veteran or a previously homeless person who has found a new home“.
Bridging AZ Furniture Bank is a local certified QCO (QCO #20357), eligible to receive these tax credit donations. Contributions to a QCO help organizations across Arizona provide essential services such as food, shelter, housing support, and furnishings to individuals transitioning from crisis to stability.
You can make a difference How to Participate
- Call or visit www.bridgingaz.org (480) 375-5454 to make a donation inline or visit any qualifying organization’s donation page
- Make your contribution and save the receipt
- File Arizona Form 321 with your state tax return
Please Note: Arizona law allows QCO donations made during 2025 or donations made from January 1, 2026 through April 15, 2026 to be claimed on the 2025 Arizona income tax return. The maximum credit that can be claimed on the 2025 Arizona return for donations made to QCO’s is $495 for single, married filing separate or head of household taxpayers, and $987 for married filing joint taxpayers.
About Bridging AZ
Founded in 2004, Bridging AZ is a 501(c)(3) nonprofit and certified QCO that provides essential home furnishings to individuals and families emerging from homelessness, crisis, or transitional situations. Bridging AZ grassroots organization that does not receive any government funding, since 2004 Bridging has distributed over 400,000 items to veterans and families in need throughout Arizona.
Media Contact
Organization: Bridging AZ Furniture Bank
Contact Person: Jim Piscopo
Website: https://www.bridgingaz.org/tax-credits/
Email: Send Email
Contact Number: +14803755454
Country:United States
Release id:37925
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