Overflow / PLUS Tax Credit

This new tax credit was signed by Governor Jan Brewer in February 2012 and became effective in August 2012. The overflow tax credit is in addition to the individual tax credit. A donor must first give the maximum toward the original tax credit, but then has the opportunity to give an additional $1050 if married filing jointly or $525 for single filer.

Taxpayers may donate through April 15th and count their donation as tax credit in the preceding tax year.  Arizona Tax Credit then distributes those funds in the form of scholarships to students through participating private schools. The individual tax credit/Overflow/plus tax credit can be recommended toward a specific student and/or a specific school.

Notifying your community of the tax benefits from donating to an STO can help encourage people to have a choice in how they spend their tax money. By helping children succeed, they can get a dollar-for-dollar tax credit on their Arizona state taxes.

Scholarship Guidelines

• For K-12 students and preschool students with disabilities.
• Priority given to students and siblings of students on the STO’s waitlist.

Scholarship Prerequisites

The following students are eligible:

• A student who attended an Arizona public school as a full-time student for at least 90 days of the prior fiscal year and then transferred from the public school to a private school
• A student who is enrolling in a private school kindergarten
• A student who is enrolling in a private preschool program for students with disabilities
• A student who is a dependent of a member of the armed forces of the United States who is stationed in Arizona pursuant to military orders
• A student who has already received a scholarship from the corporate tax credit or Overflow/Plus tax credit program, and has continued their education in private school.