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The clock is ticking on several unusual tax breaks open to Arizona residents for 2008, including a new credit to help the families of Arizona military personnel and a new tax deduction to encourage college saving.

The military tax break is the latest in a series of state credits, which are dollar-for-dollar reductions in Arizona income taxes.

"In addition to getting all your contributions back (in the form of the state tax credits), you take a deduction for the entire amount of your federal tax return," said Stefanie Campbell, an enrolled-agent tax-return preparer in Phoenix.

Here's a look at the five state tax items:

• Credit for helping military families.

People who donate to the state's Military Family Relief Fund can get a credit for the amount they contribute, up to $200 for singles and $400 for married couples filing jointly. The fund is run by the Arizona Department of Veterans' Services. It helps families of Arizonans killed or injured in the line of duty.

About 95 percent of the money collected goes to benefit families in need, department spokeswoman Diane D'Angelo said. Credits are capped after $1 million has been raised in a year, but only $200,000 has been contributed so far in 2008.

One quirk of the law requires donors to list the last four digits of their Social Security numbers on checks, D'Angelo said.

Make your check payable to the Military Family Relief Fund and mail it to the Arizona Department of Veterans' Services, 3839 N. Third St., Suite 200, Phoenix, AZ 85012.

• Credit for helping working-poor families.

Arizonans can take a credit that reflects money donated to charities that offer help to working-poor families. This credit is worth up to $200 for single taxpayers and $400 for joint filers.

One quirk about this credit is that it applies to working-poor charity donations above what you contributed as total itemized charitable deductions in a "baseline" year.

If you had itemized charity deductions and filed an Arizona tax return in 1996, that's your baseline year. Otherwise, it's the first later year when you met those conditions.

The Department of Revenue's Web site (www.az dor.gov) lists qualifying charities.

• Credit for private-school scholarships.

This donation supports tuition scholarships at private schools from kindergarten through 12th grade. It's worth up to $500 for singles and $1,000 for joint filers, depending on the size of donation.

The Department of Revenue Web site provides a list of eligible school-tuition organizations.

You can't take the credit if you specify the donation is designed to pay for your own child's tuition.

• Credit to support public-school extracurricular activities.

Taxpayers can help pay the costs of athletic uniforms, musical-band equipment and other materials for extracurricular activities at public schools in Arizona, from kindergarten through 12th grade.

This credit, which also applies to "character-education" programs at public schools, is worth up to $200 for singles and $400 for joint filers.

You can make donations and take credits for both public schools and private tuition in the same year.

• Deduction for Section 529 college plans.

Starting in 2008, Arizona allows residents to contribute to Section 529 college plans and deduct their investments, up to $750 for singles and $1,500 for joint filers.

Unlike credits, deductions reduce taxable income, not taxes per se, and thus are less valuable.

The Section 529 plans are tax-sheltered accounts sponsored by Arizona and most other states in partnership with various financial firms. Most feature low-dollar access to mutual funds with few eligibility restrictions.

Many states allow deductions for residents, but Arizona is unusual in that it doesn't require investments in the state's own plans. That is, Arizonans can invest in 529 accounts offered by other states and still get a deduction.

Reach the reporter at russ.wiles@arizonarepublic.com or 602-444-8616.