Program Overview

Any business with an Arizona tax liability can assist children in obtaining a quality education by making a tax credit donation. The Arizona Corporation School Tuition Tax Credit Law, A.R.S. Section 43-1183, followed in 2015 by HB2153, allows corporations to receive a dollar-for-dollar tax against their state income tax liability for these donations.

Who is Eligible

  • C-Corps and S-Corps that pay Arizona corporate income taxes.
  • LLC’s taxed as S-Corps for federal and state purposes are eligible to make a donation for the tax credit.
  • Corporation does not have to be based in Arizona, but only needs an Arizona state tax liability.
  • Donations are a dollar-for-dollar tax credit against the corporation’s Arizona state taxes.
  • There is no maximum amount a corporation may contribute.  The minimum is $5,000.
  • Unused tax credits from contributions can be carried forward for up to 5 years.

How does the Process Work?

  1. VTO will submit application to the state in July.  All we need is a company’s name, EIN#, amount you wish to donate, and contact information.
  2. State approves application on a first come first served basis.  Based on that year’s cap.
  3. After approval corporation has 20 days to make donation to VTO.  Corporation submits credit as part of tax return.

Scholarships Paid For 2018-2019 By Income Level

Corporate scholarships paid during FY 2018/19 to students with family income of 185% and below of poverty level:
Amount of corporate scholarships paid = $8,500
Amount as a percentage of total original scholarships paid = 47.25%

Corporate scholarships paid during FY 2018/19 to students whose family income is 186% to 342% of poverty level:
Amount of corporate scholarships paid = $9,488
Amount as percentage of total original scholarships paid = 52.75%

Original scholarships paid during FY 2018/19 to students with family income of 185% and below of poverty level: $0 and 0%
Original scholarships paid during FY 2018/19 to students whose family income is 186% to 342% of poverty level: $0 and 0%

Switcher scholarships paid during FY 2018/19 to students with family income of 185% and below of poverty level: $0 and 0%
Switcher scholarships paid during FY 2018/19 to students whose family income is 186% to 342% of poverty level: $0 and 0%