Scholarship Granting Organizations in Arizona
Arizona has declined to participate in the federal scholarship tax credit program — the governor has vetoed opt-in legislation or announced the state will not elect. Because states may make a fresh election each year, a future administration could still opt in. Until then, no SGO can be listed in Arizona and scholarships cannot reach Arizona students through the federal program.
Where Arizona stands
Governor vetoed opt-in legislation on January 16, 2026, and vetoed further opt-in bills through May 2026. Arizona's existing state tax-credit scholarship programs operate independently of the federal program.
From the Section 25F State Opt-In Tracker, reviewed July 2026. Status can change during legislative sessions.
Get Arizona Section 25F updates
A short email the moment Arizona's opt-in status changes, plus formation deadlines as January 1, 2027 approaches.
What this means in Arizona
For donors
Not for Arizona students — the state has declined to participate. But the credit itself does not depend on where the donor lives: Arizona residents can contribute to an SGO listed in a participating state and claim the federal credit, with scholarships funding students who reside in that state. If Arizona opts in under a future administration, in-state giving would become possible.
For families & schools
Not at this time — the federal program's scholarships can only reach students in states that have opted in, and Arizona has declined to participate. States may revisit the decision annually.
For organizations forming an SGO
Listing is not possible in Arizona while it stays out. Organizations committed to the model sometimes prepare formation documents in advance, organize state-conditional pledge campaigns that only process if Arizona opts in later, or serve students through listings in participating states, subject to those states' rules.
The federal rules are the same in every state
Section 25F’s structural requirements apply identically in Arizona and every other participating state.
Donor credit
$1,700 / yr
$3,400 married filing jointly — dollar-for-dollar federal credit
Student eligibility
≤ 300% AMI
Household income at or below 300% of area median gross income
Spending ratio
90 / 10
At least 90% of annual revenues to qualified scholarships
Distribution
10+ students
Awarded to ten or more students not all at one school
Finding an SGO in Arizona
No SGO is federally listed anywhere yet — the program takes effect January 1, 2027, and the procedure for a state to submit its list of qualifying SGOs is still pending IRS guidance. Because Arizona has not opted in, no SGO can be listed there. Our directory will list organizations by state as those listings are published.
Arizona SGO questions, answered
Has Arizona opted into the Education Freedom Tax Credit (Section 25F)?
Arizona has declined the Education Freedom Tax Credit (Section 25F) program. Governor vetoed opt-in legislation on January 16, 2026, and vetoed further opt-in bills through May 2026. Arizona's existing state tax-credit scholarship programs operate independently of the federal program.
Is the Education Freedom Tax Credit the same as the Federal Scholarship Tax Credit (FSTC)?
Yes. The Education Freedom Tax Credit (EFTC), the Federal Scholarship Tax Credit (FSTC), the Educational Choice for Children Act (ECCA), and Section 25F are four names for the same federal program — a dollar-for-dollar tax credit of up to $1,700 per year for donations to scholarship granting organizations, effective January 1, 2027.
Can Arizona donors claim the $1,700 federal scholarship tax credit?
Not for Arizona students — the state has declined to participate. But the credit itself does not depend on where the donor lives: Arizona residents can contribute to an SGO listed in a participating state and claim the federal credit, with scholarships funding students who reside in that state. If Arizona opts in under a future administration, in-state giving would become possible.
How do I find a Scholarship Granting Organization in Arizona?
None operate yet — Arizona has not opted in, so no SGO can be listed there. The SGO Guide directory at sgoguide.com/find will list organizations by state as the program rolls out.
How do I start an SGO in Arizona?
The federal structural work — 501(c)(3) status, SGO primary mission, governing documents, and compliance design — can be prepared now, but Arizona must elect to participate before any SGO can be listed there and donors can claim the credit.
Around Arizona
Of the 5 states bordering Arizona, 3 have opted in — Colorado, Nevada and Utah — while California and New Mexico have not.
That distinction matters more here than it looks. A Arizona taxpayer can still give to an SGO listed in a participating state and claim the full $1,700 credit — nothing in Section 25F requires a donor to live in a participating state. What Arizona's status decides is whether any SGO can be listed in Arizona to fund Arizona students, and until it elects, none can. Why donors and students are governed by different rules.
Disclaimer: This page summarizes publicly tracked legislative status and general program rules for educational purposes. It is not legal or tax advice. Section 25F regulations are still evolving — consult qualified counsel before making decisions about SGO formation or donations.
Talk it through before you decide.
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What happens next
We read your submission and respond within one business day
A working session, typically 45–60 minutes — your situation, not a sales pitch
Which of the three paths fits, what your state requires, and what the timeline is
You leave with a clear recommendation — including when the answer is to join an SGO rather than form one, or to wait