Yes, your state tax refund received in 2022 is taxable at the Federal level if you itemized deductions and deducted state tax in 2021.
From a tax perspective, for the donation credit in Arizona, you still have a tax benefit. as an example, if you donate $2,000 in 2021, your state tax refund is increased by $2,000. In 2022, you are taxed on your Federal return on the extra $2,000. Suppose your tax bracket is 24%, you will pay $480 in tax, leaving you a tax benefit of $1,520.
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