Do you pay income tax or premium tax to the state of Arizona? A revolutionary and 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. Consider this…

A Win-Win Opportunity

Did you know that Arizona is leading the nation in tuition tax credit opportunities for both individuals and corporations? In 2006, the Arizona Corporation School Tuition Tax Credit Law, A.R.S. Section 43-1183, was passed, allowing most "C" corporations and insurance companies to claim a dollar-for-dollar tax credit against the state income tax or premium tax they owe to help children in low-income families receive a quality private education! Eligible corporations and insurance companies must pay corporate state income tax or premium tax, and the credit must be less than or equal to the actual amount they will pay to the state of Arizona. There is an annual state-wide cap of $35.831 million for the 2013-2014 school year that is allocated on a first-come-first-serve basis. The annual state-wide cap will increase by 20% each year and resets every July. There is no set maximum contribution for an individual corporation or insurance company.

How to Take the Credit

• Corporations and insurance companies interested in making a tax credit contribution should contact APESF directly at (480) 699-8911 or helpdesk@apesf.org and complete the Corporate Tax Credit Contribution Form.
• APESF will submit an approval request for the contribution to the AZ Department of Revenue.
• If the state-wide cap has not been met, ADOR will respond within 20 days, approving the contribution. Once APESF receives approval notification, the corporation or insurance company will have 20 calendar days to make payment to APESF. (If payment is not made within 20 days, the contribution will be taken out of the cap, and the process must start all over again.)
• The corporation or insurance company will take the credit on its next tax return, but may carry any unused credit forward for up to five years.

Who Benefits

The Corporate Tax Credit benefits low-income families (income cannot exceed 185% of the federal reduced-priced lunch index). Scholarships are awarded to students switching from public to private school, starting Kindergarten or students who have received a Corporate, Individual or Overflow/PLUS tax credit scholarship in ANY year during their private school attendance. The corporation may recommend a specific school but cannot recommend a specific student. If no eligible students make application to APESF from the recommended school, or if the recommended school is not considered a qualified school under tax credit law, the funds will be awarded to eligible students in other qualified schools.

This is truly the easiest "donation" you can make. There is no net cost to the company, and Arizona’s children get a benefit that lasts a lifetime!