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Arizona Tax Credit Scholarship Program

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Information For Individual Taxpayers

School choice advocates push to keep tax credit scholarship program alive

Two separate nonrefundable tax credits are available to individuals for contributions made to a Certified School Tuition Organization which provides scholarships for students enrolled in Arizona private schools. An individual who is a shareholder of an S corporation may also claim two separate nonrefundable credits for contributions made by the S corporation when the S corporation qualifies for a corporate credit and elects to pass the credit through to its individual shareholders.

This tax credit is claimed on .

The maximum Original Individual Income Tax Credit donation amount for 2022:$623 single, married filing separate or head of household $1,245 married filing joint.

The maximum Original Individual Income Tax Credit donation amount for 2023:$655 single, married filing separate or head of household $1,308 married filing joint.

This tax credit is claimed on and is available to individual taxpayers who donate the maximum amount allowed under the and make an additional donation to a Certified School Tuition Organization.

The maximum Switcher Individual Income Tax Credit donation amount for 2022:$620 single, married filing separate or head of household $1,238 married filing joint.

The maximum Switcher Individual Income Tax Credit donation amount for 2023:$652 single, married filing separate or head of household $1,301 married filing joint.

Arizona Tax Credit Scholarship Program Insurance Premium Tax

AAA Scholarship Foundation is a 501 nonprofit organization and state approved Scholarship Tuition Organization that exclusively serves eligible low income and disabled children through the Arizona Tax Credit Scholarship Program which allows any company that pays Arizona insurance premium tax to redirect up to 100 percent of its tax liability to AAA in order to fund K-12 education scholarships for eligible, low-income children. It costs you NO extra dollars the legislature has made it possible for your company to earmark up to 100 percent of its state insurance premium tax liability to fund low-income student scholarships or designate the redirection specifically for scholarships for displaced and disabled students.

Once the AZ DOR approves your request we will send you a copy of the approval letter, a payment reminder and remittance instructions. You can remit that amount directly to AAA via check, wire or ACH. Payments must be made within 20 days of your DOR approval.

Once the remittance is received, AAA will promptly return an acknowledgement for each remittance to your company. It will list the name of the company remitting the funds, the companys tax ID number, the amount of the remittance and the date of the remittance . The company should retain the Certificate of Contribution in order to attach a copy to its state tax return.

To View the PDF Version,

To Access the Tax Credit Application,

Corporate Tax Credit Scholarship Program

Corporations with an Arizona corporate income tax or insurance premium tax liability can redirect up to 100% of their tax liability to a state approved School Tuition Organization, such as ASCT, and receive dollar-for-dollar tax credits for their contribution.

This tax credit program is exclusively used to provide scholarships for low-income students statewide.

Companies can also participate in the Corporate Tax Credit for Disabled and Displaced Children.

Note: Once you know you would like to participate, please contact and we will prepare and submit the form for DOR. The 2022 corporate cap opened in July but credit funds are still available under the cap. We are accepting applications for 2022 and 2023 tax credit years.

Currently, only C-Corporations and S-Corporations with an Arizona income tax liability and insurance companies that pay an Arizona premium tax credit can participate in the Arizona Private School Corporate Tax Credit Programs.

More information on the programs is available on the Department of Revenue website here.

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The State Of Arizona Requires That Stos Meet The Following Requirements Per The Arizona Department Of Revenue: The Sto

  • must allocate at least 90% of its annual contributions to scholarships
  • shall not limit the availability of scholarships to students of one school
  • may allow donors to recommends student beneficiaries but shall not award, designate or reserve scholarships solely on the basis of donor recommendations
  • shall not allow donors to designate student beneficiaries as a condition of any contribution to the organization
  • shall not facilitate, encourage or knowingly permit the exchange of student beneficiary designations
  • shall include on the organizations website, if one exists, the percentage of the total dollar amount of educations scholarships and tuition grants awarded during the previous fiscal year to students whose family income is up to 185% of poverty level and students whose family income is greater than 185% of poverty level but not more than 342.24% of poverty level.
  • must not award scholarships to students who are simultaneously enrolled in a district school or charter school and a qualified school
  • shall follow all other statutory requirements in A.R.S. 43-1089 or Title 43, Chapter 16. This includes annual Arizona Department of Revenue STO reporting criteria and annual audit procedures by an independent accounting firm.
  • Information For Corporate Taxpayers

    2020

    There are two separate nonrefundable corporate tuition tax credits for donations made to Certified School Tuition Organizations which provides scholarships for students to attend Arizona private schools. Due to the statutory caps on the aggregate amount of credits allowed in a fiscal year, both the low-income corporate tax credits and the disabled/displaced corporate tax credits must be pre-approved by the Arizona Department of Revenue.

    This tax credit is claimed on . Corporations interested in making a donation to a Certified School Tuition Organization for the low-income tax credit must contact a School Tuition Organization directly to discuss applying for a corporate credit donation pre-approval. Corporate partners, S corporation individual shareholders and exempt organizations subject to unrelated business taxable income may also be eligible to claim the low-income corporate credit.

    The Low-Income Corporate Tax Credit Cap for FY2021/22 is $135,346,407.

    This tax credit is claimed on . Corporations interested in making a donation to a School Tuition Organization for the disabled/displaced tax credit must contact a School Tuition Organization directly to discuss applying for a corporate credit donation pre-approval. Corporate partners, S corporation individual shareholders and exempt organizations subject to unrelated business taxable income may also be eligible to claim the disabled/displaced corporate credit.

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    Arizona State Tax Credit

    The Arizona State Tax Credit is not a donation. When you take the credit, you direct funds you have already paid, or are obligated to pay, in state taxes to help provide need-based scholarships for Gregory School students. Directing your state tax liability to The Gregory School costs you nothing.Everyones taxes are different, but if you work in Arizona, you probably have an Arizona tax liability. This means that you paid state taxes, even if you do not owe money. If you have an Arizona tax liability, you can take the credit.Taking the credit will reduce your Arizona state tax liability by that amount, not to exceed either the maximum amount allowed or your total tax liability, whichever is less. The credit will either reduce the amount you would expect to owe the state or increase your refund.Maximum contributions for the 2022 tax year for single filers is $1,243 and married filing jointly is $2,483. The deadline for the 2022 tax year is April 15, 2023.

    Take the Arizona Tax Credit

    Arizona Independent Schools Scholarship Foundation accepts tax credit contributions to provide need-based scholarships for Gregory School students.

    C and S Corporations can participate too! Eligible corporations take a dollar-for-dollar credit for directing their tax liability to this program. Please contact This email address is being protected from spambots. You need JavaScript enabled to view it. to learn more.

    You Can Support Any Private School In The State

    See more schools by using the menu below:

    Catholic Schools

    Annunciation Catholic School Developing children to their fullest God-given potential spiritually, intellectually, morally, socially, and physically.

    Bourgade Catholic High School

    Brophy College Preparatory

    Holy Family Academy Providing students in grades K-12 with a truly outstanding education in the classical liberal arts in an environment that is conducive to the formation of the whole person.

    Most Holy Trinity Catholic School

    Notre Dame Preparatory High School Promoting academic excellence and the pursuit of holiness through the shared values of Reverence, Respect, & Responsibility, out of love for Jesus Christ.

    Our Lady of Mount Carmel Catholic School

    Our Lady of Perpetual Help

    Our Lady of Perpetual Help

    Our Lady of the Lake Catholic School

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    Saint Cyril of Alexandria School

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    Saint Theresa Catholic School

    Saint Thomas Aquinas Catholic School

    Saint Thomas the Apostle Roman Catholic School

    Saints Simon and Jude Cathedral School

    Salpointe Catholic High School

    San Francisco de Asis Catholic School

    Villa de Marie Academy

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    Contributions To Qualifying Charitable Organizations

    There are two tax credits available to individual income taxpayers for charitable donations: one for donations to Qualifying Charitable Organizations and one for donations to Qualifying Foster Care Charitable Organizations. Individuals making cash donations made to these charities may claim these tax credits on their Arizona Personal Income Tax returns.

    What If The State Owes Me A Refund

    What Is A Tax Credit?

    Your state refund will be increased by the amount of your Tax Credit contribution.

    Example: You are due a refund from the state of $500. You make a Tax Credit contribution of $2,483 and youve now increased your refund to $2,983.

    Anyone who pays Arizona state taxes can contribute relatives, friends, co-workers, neighbors, etc.

    Its really that simple! Please contact or if you have any questions.

    Yes! These are two separate programs. Receiving an ESA scholarship does NOT prevent you from contributing your state tax dollars to AISSF.

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    Arizona Tax Credit Is Accepting Online Applications For The 2022

    AzTxCr awards scholarships twice a month. Applying early allows more opportunities for your student to receive scholarship awards during the school year.

    As a parent or guardian you need to apply one time per school year. Incomplete applications will not be considered for a scholarship award. Please make sure you have read the instructions carefully, answered all questions and have included all the necessary information and documentation required when applying.

    Taxpayers Making Contributions Or Paying Fees

    An individual may claim a nonrefundable tax credit for making contributions or paying fees directly to a public school in this state for support of eligible activities, programs or purposes as defined by statute. The public school tax credit is claimed by the individual taxpayer on . The maximum credit allowed is $400 for married filing joint filers and $200 for single, heads of household and married filing separate filers.

    For the purpose of claiming Arizonas tax credit for contributions made or certain fees paid to a public school, the Arizona Department of Revenue now requires taxpayers report the schools County Code, Type Code, and District Code & Site Number number on Form 322, which is included with the Arizona income tax return.

    The CTDS is a nine digit number that the Arizona Department of Education uses to identify Arizona public and charter schools.

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    How Does Acsto Work

    We believe every student should have the opportunity to receive a Christian Education. Our goal is to do everything we can to make this affordable for you. Since 1998, ACSTO has awarded more than $300 million to 44,000 Arizona students. Tax credit scholarships have made it possible for thousands of families to send their children to Christian Schoolswe hope your family will be one of them!

    When an Arizona taxpayer makes a donation to ACSTO, they receive a dollar-for-dollar credit against their state tax liability. This means that at the end of the year, if they would normally get a refund, theyll get a bigger refund. If they normally owe taxes, theyll owe less.

    In turn, we use these tax credit donations to award tuition scholarships to K-12 students attending one of our Partner Schools.

    In addition, when a taxpayer makes a donation to ACSTO, they can identify a school or recommend a student who is not their own dependent to be considered for a scholarship. By Arizona law, a recommendation does not guarantee a scholarship. However, when our Selection Committees make their award decisions, they do consider these Donor Recommendations along with the Financial Circumstances and the Narrative provided in the students Scholarship Application.

    In order to be considered for a scholarship, ACSTO needs a current Scholarship Application for each of your children. Your children must also be enrolled at the school listed on the application.

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    Arizona Private Education Scholarship Fund

    Americas Scholarship Konnection, Inc. is a 501 Nonprofit company that offers a K-12 Private School Scholarship program that includes a corporate state tax credit which typically offsets nearly 100% of the dollars contributed to the fund by ABC corporation.

    Key advantages to this tax credit program vs. ABC corporation simply paying state taxes include:

  • ABC corp. funded X amount in scholarships

  • Employee Benefit ABC corp. can steer middle income and below employees to have their children participate in our scholarship program

  • Improved Employee Productivity childcare challenge / virtual classroom distractions are lower w/ private vs. public school due to more predictable scheduling

  • Enhanced Future Labor Marketimproved educational outcomes yield a stronger and more skilled workforce of tomorrow

  • Very Low to Zero Cost nearly 100% of dollars contributed to the program are returned to ABC corp. via a state tax credit / rebate

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    Arizona Individual Tax Credit Scholarships

    U.S. Supreme Court Dismisses Legal Challenge to Arizona School Choice Program

    On April 4, 2011, in a major victory for school choice efforts nationwide, the United States Supreme Court dismissed this frivolous legal challenge to Arizonas Individual Scholarship Tax Credit, which provides tens of thousands of school children the opportunity to attend the private school of their parents choice.

    Arizona Allows Taxpayers To Donate Money To Private Schools And Their Students And Receive A Dollar For Dollar Tax Credit

    Arizona Residents are given the opportunity to aid students who attend private schools through a dollar for dollar tax credit. What this means is married couples can donate $2,213 and if you are single you can donate $1,107. For example, if you donate the $2,213, you are guaranteed to get the $2,213 back in your Arizona State tax return. If you owe State taxes, the $2,213 will be deducted from what you owe.

    In simpler terms, you are essentially donating to a childâs education at no cost to yourself.

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    Contact Us For More Information On State Tax Credit Opportunities For Your Corporation

    Helping Enable all Americans to have Freedom of Educational Choice regardless of Zip Code or Economic Status

    We are a Non Profit Organization dedicated to granting scholarships for K-12 private education. These scholarships go to primarily low income families or children with disabilities as identified by an IEP or children that have been displaced in foster care.As a result of donations we receive, we are able to provide this funding to families who would otherwise not have the freedom to choose the best school for their child.

    With the conversation in our country about inequality, here at ASK we are working to make things better. We literally work to level the playing field for kids starting at Kindergarten to make sure that every family can send their child to the school of their choice, one child at a time. We are passionate about this and it reflects in everything we do.

    Please Share This Information

    How are tax-credit scholarship programs designed?

    With others you know that might consider giving to this very worthwhile organization while receiving a dollar-for-dollar tax credit in the process! You decide where your tax dollars will be spent and know that you have invested well in the future of education! Thank you for your support.

    Please ensure that your donation is made by April 15, 2023 for a 2022 tax credit.

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    How Does The Corporate Tax Credit Work

    PCDS is a 501 charitable organization and belongs to four different School Tuition Organizations , which raise money on behalf of PCDS and other member schools.

    Companies can redirect their taxes to one STO , which distributes funds for scholarships for need-based students to attend PCDS and other private schools. The Corporate Tax Credit program is not about financial donations. In fact, making a contribution to an STO costs a corporation nothing it is a virtually free opportunity for a company to redirect its tax dollars to students instead of paying them to the state.

    Original Individual Income Tax Credit Scholarship Program

    • Tax-Credit Scholarship

    Arizona offers tax credits to individuals supporting School Tuition Organizations , nonprofits that provide private school scholarships to students in need. This tax-credit scholarship program allows taxpayers to receive tax credits for their donations to nonprofit organizations that provide school scholarships to K12 students. Students are able to receive more than one scholarship from STOs in a given year. Learn more about the program on this page, including eligibility, funding, regulations, legal history and more.

    We do not administer this program.

  • Americas First Tax-Credit Scholarship Program

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    Supreme Court Affirms Arizona Tax Credit Scholarship Program

    In a ruling hailed by school choice supporters across the country, the United States Supreme Court has ruled opponents of Arizonas 14-year-old tax credit scholarship program may not challenge the program on grounds it violates the Establishment Clause of the First Amendment.

    The Court ruled 5-4 in Garriott vs. Winn and Arizona Christian School Tuition Organization vs. Winn against a lawsuit by the Arizona chapter of the American Civil Liberties Union, which contested a tax credit program giving Arizona parents choices other than their neighborhood public schools.

    The April 4 ruling overturns a 2009 decision by the Ninth U.S. Circuit Court of Appeals, which held the Arizona program promotes religion.

    Clint Bolick, director of the Phoenix-based Goldwater Institutes Center for Constitutional Litigation, says the ruling is important and has ramifications beyond school choice. It takes tax deductions and tax credits that can be used for religious purposes out of the realm of federal legal challenges, so long as they are not discriminatory, he explained.Not State MoneyJustice Anthony Kennedy wrote the opinion for the majority, which included Chief Justice John Roberts and Justices Samuel Alito, Clarence Thomas, and Antonin Scalia.

    The fact that the government reduces an individuals tax liability based on that donation does not transform those funds from private to public money, he said.

    On standing, this was a genuinely close question, said Bolick.

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