If you are part of an Arizona-based corporation, consider making a donation to Arizona Tax Credit, a Corporate STO. Scholarship awards from our organization are utilized to help children who are seeking alternatives to the public classroom.
A disabled learner will more likely flourish outside of public school, where he or she can learn in a safe, specialized environment, suitable to their needs. Families suffering financial or emotional hardships can also benefit from corporate donations, as they can give their children a better chance to succeed.
Here’s how it works:
- An Arizona “C” Corporation(A.R.S. § 43-1183)can donate to a corporate School Tuition Organization (STO) (ie: Arizona Tax Credit) designating a particular school.* There is an annual state-wide cap of $158,476,605 that opens on July 3, 2023 for the 2023-2024 school year that is allocated on a first-come-first-serve basis. “C” Corporations can donate up to their state income tax liability for the given tax year as long as it does not exceed the statewide cap for the year.
- An Arizona “S” Corporation(A.R.S. § 43-1089.04) can donate to a corporate School Tuition Organization (STO) (ie: Arizona Tax Credit) designating a particular school.* There is an annual state-wide cap of $158,476,605 that opens on July 3, 2023 for the 2023-2024 school year that is allocated on a first-come-first-serve basis. “S” Corporations may donate up to their state income tax liability for the given tax year with a minimum donation of $5,000 and then pass the tax credit on to it’s shareholders proportionately.
- Qualified families apply to the STO for a financial aid scholarship.
- The STO awards the scholarships and the money is sent directly to the schools.
- At tax time, the corporation claims the corporate tax credit for the amount contributed.
- The State of Arizona provides a credit against the corporation’s state taxes for 100% of your contribution.
*designating money to a particular student is prohibited from corporate donors
Donating to K-12 private schools can mean dollar-for-dollar returns on your business’s state income or premium taxes. It’s a win-win situation for the families in need, the community and you, the taxpayer. Help inspire a new generation of thinkers, teachers, and leaders by providing them with the specialized education they deserve.
Students must remain enrolled on a full-time basis to receive the scholarship. The following students are eligible for a corporate tax credit:
- For K-12 students and preschool students with disabilities.
- Student’s family income cannot exceed 185% of the income required to qualify a child for reduced price lunches.
- Scholarship cap: $6,100 for grades K-8; $7,900 for grades 9-12. The scholarship award amount for the 2023/2024 school year can not exceed the tuition cost for that school year.
- A student attended an Arizona public school as a full-time student for at least 90 days of the prior fiscal year or one full semester and then transferred from the public school to a private school.
- A student is enrolling in a private school kindergarten.
- A student is enrolling in a private preschool program for students with disabilities.
- A student 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 received a Corporate scholarship under on of the above criteria in a prior year and the student continued to attend a private school in subsequent years; OR
- Received an Original/Individual scholarship or a Switcher/Overflow Plus scholarship in a prior year and the child continued to attend a private school in subsequent years.
Eligibility prerequisites have been expanded to include:
- The student was homeschooled immediately prior to enrolling in a private school.
- The student moved to Arizona from out of state immediately prior to enrolling in a private school.
- The student participated in the ESA program and did not accept or renew the scholarship in order to receive STO scholarships.
If you have any questions or concerns please contact us today for assistance!