Do you pay corporate income tax to the state of Arizona? An exciting opportunity is available to your company through the Arizona state tax code! The Corporate Income Tax Credit Program has already given hope to so many children and continues to be an integral part of Arizona’s school choice movement.
Great opportunity for your company!
In 2006, the Arizona Corporation School Tuition Tax Credit Law, A.R.S. Section 43-1183 was passed to allow corporations to receive a tax credit against the state income tax they owe to help children in low income families receive a quality private education. There is an annual state-wide cap starting July 1st of every fiscal year that is allocated on a first-come-first-serve basis. The maximum contribution for a corporation is whatever their annual tax liability is.
Who is eligible to contribute Corporate Tuition Tax Credits?
- Any insurance company in Arizona.
- Any ‘C’ corporation that has a tax liability within the state of Arizona.
- Any ‘S’ corporation that has a tax liability within the state of Arizona. Note: you may “pass through” your liability to individual shareholders or partners.
How does the process work?
- Contact us to initiate the overall process or fill out this form Corporate Tax Credit Contribution Form and send to us. We will forward the form to Arizona Department of Revenue (ADOR) on your behalf on July 1. Note: Funds are allocated on a first come, first served basis.
- When approved, AZ4Education will contact your company to arrange for a wire transfer or check delivery, which must occur within 20 days of ADOR approval.
- When your company files taxes with the State, the corporate contribution may be claimed using the standard 120 form. The company may also carry any unused credit forward for up to five years.
The Corporate Tax Credit benefits low-income families, displaced students and/or students with disabilities. A corporation may suggest that its contribution be applied to one or many schools or even a geographic location. AZ4Education supports all private K-12 schools so you have more choices across the state.
This is truly the easiest contribution a business can make resulting in no net cost to the company. Help make a difference in Arizona education, your community by supporting school choice with income tax dollars.
- ARS §43-1089 – Private School Tax Credit
- ARS §43-1183 – Corporate School Tuition Tax Credit
- ARS §43-1184 – Corporate Disabled/Displaced Tuition Tax Credit
- ARS §20-224.06 – Premium tax credit for low-income scholarships
- ARS §20-224.07 – Premium tax credit for displaced students and students with disabilities
- Title 43, Chapter 15 – School Tuition organizations for Corporate Contributions