Arizona provides an opportunity for Corporations that are domiciled in AZ to redirect up to 100% of their AZ tax liability toward a School Tuition Organization like ASK to be distributed as scholarships for students in private K-12 education. This Tax Liability can be Income Tax or Insurance Premium Tax.
The Arizona Cap on the funds available for this program opens up July 1st , so time is of the essence because the cap typically closes very quickly. The Cap that Arizona has designated for low income families is $158 million +an additional $6 million designated for displaced/ disabled students, but we still expect the same or higher volume of participation as this is a very popular program for Corporations to utilize.
To summarize, Corporations may redirect up to 100% of their Corporate Income or Insurance Premium tax liability from the State of Arizona to a state licensed School Tuition Organization (STO) like America’s Scholarship Konnection (ASK) and receive a dollar for dollar tax credit.
The funds are distributed by ASK to families, in the form of scholarships for private K-12 education.
In order to qualify for these scholarships, the criteria is either:
Link to A.R.S. §20-224-06
Link to A.R.S. § 43-1183
Link to A.R.S. § 20-224-07
Link to A.R.S. § 43-1184
ARIZONA DEPARTMENT OF REVENUE Application for Approval of the Corporate Income Tax Credit for Donations to School Tuition Organizations (A.R.S. § 43-1183 or A.R.S. § 20-224.06) or Corporate Income Tax Credit for Disabled I Displaced Students (A.R.S. § 43-1184 or A.R.S. § 20-224.07)
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