For taxable years 2009 and later, the baseline year requirement has been eliminated.
For taxable years 2013 and beyond, the requirement to itemize deductions on the state return has been eliminated. You cannot claim both a tax credit and an itemized deduction for the amount of the contributions made to a qualifying charity for which you are claiming a credit. However, you may claim the Arizona Charitable Tax Credit on your state return and an itemized deduction for the amount of the contribution on the federal return.
**Please note, On Thursday, August 23, 2018, the IRS proposed amendments to federal tax code regulations that may change how State tax credit donations are treated on your federal tax return. While the State tax credit remains unchanged, donations for which the full tax credit is claimed may be ineligible for an itemized federal deduction if made after August 27, 2018. As of today (8-27-18) this measure is still a proposal and will be open for public comment. Please contact your tax adviser or the Internal Revenue Service for questions or guidance.**