How taxes (typically) work:

Arizona state tax liability (line 19 of AZ form 140) .................................................................$3,000
Arizona state withholdings taken out of paychecks over the course of the year ...................$2,500

End result will be the tax payer still owes the state $500

Examples of how the credit can work for you:

Arizona state tax liability (line 23 of AZ form 140) .............................................................$3,000
Original tax credit donation (claimed on form 323) ..............................................................$1,070
PLUS/Switcher tax credit donation (claimed on form 348) ..................................................$1,064

Reduces your liability owed to $866
PLUS/Switcher tax credit donation (claimed on form 348) ..................................................$1,064

End result will be the tax payer will expect a refund of $1,634

Arizona state tax liability (line 23 of AZ form 140) ...............................................................$6,000
Original tax credit donation (claimed on form 323) ...............................................................$1,070
PLUS/Switcher tax credit donation (claimed on form 348) ...................................................$1,064

Reduces your liability owed to $3,866
Arizona state withholdings ....................................................................................................$2,500

End result will be the tax payer still owes the state $1,366

Arizona state tax liability (line 23 of AZ form 140) ..................................................................$250
Original tax credit donation (claimed on form 323) ..............................................................$1,070
PLUS/Switcher tax credit donation (claimed on form 348) ..................................................$1,064

Reduces your liability owed to $0, but with a carryover credit of $1,884
*You may only claim a credit for the maximum donation made, or the amount of liability owed, whichever amount you reach first.
Arizona state withholdings ......................................................................................................$500

End result will be the tax payer will expect a refund of $500