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.