Your Corporation Can Make a Difference
Change lives
without impacting your bottom line. The Arizona Private School Tax Credit Program allows your company to donate up to 100% of what it owes in state taxes to the Arizona Private School Tuition Organization (APSTO) and receive a dollar-for-dollar tax credit against its tax liability. APSTO turns your tax liability into tuition scholarships, providing much needed assistance for children attending private schools in Arizona.
Scholarships generated from your donation will exclusively benefit underserved children (grades K-12) in low-income families, children with disabilities (physical, learning, and emotional), and children who have been in, or are in the foster care system.
Because this is a dollar-for-dollar credit against taxes your company already must pay to the state, it doesn’t take away from your bottom line or other philanthropic programs you are involved with. In other words, the net cost to your company is zero, but priceless to a child.
Please consider partnering with us in this most worthwhile program.
Who Can Participate?
C-Corporations
C-Corporations may donate up to their state income tax liability for the given tax year, provided the amount does not exceed the entire statewide cap. If a corporation donates more than their tax liability, it can be carried forward for up to 5 years. A.R.S. 43-1183.
S-Corporations
S-Corporations and LLC’s filing as an S- Corporation may donate up to their state income tax liability for the given tax year, with a minimum donation of $5,000 and then pass the tax credit on to its shareholders proportionately. Statewide cap applies. If a corporation donates more than their tax liability, it can be carried forward for up to 5 years. A.R.S. 43-1089.04.
Please
click here
for additional S-Corporation and individual shareholder reporting requirements.
Insurance Companies
Insurance Companies that pay premium tax may donate up to their state tax liability for the given tax year, provided the amount does not exceed the entire statewide cap. If a corporation donates more than their tax liability, it can be carried forward for up to 5 years. A.R.S. 43-1183.
Corporate Program Facts
- The donation must be made to a School Tuition Organization (STO). APSTO is a certified STO by the Arizona Department of Revenue (ADOR) and a federal nonprofit organization (501(c)(3)).
- Corporations can designate their donation to either the Low-Income Corporate Scholarship Program A.R.S. 43-1183 and/or the Disabled/Displaced Corporate Scholarship Program A.R.S. 43-1184.
- There is no set maximum amount for which a corporate donor can receive a tax credit. Instead, there is an annual statewide cap on the total amount all corporate donors combined can donate. For fiscal year 2023-2024 the Statewide Cap is $158M for Low-Income and $6M for Disabled/Displaced for corporate donations.
- The minimum contribution amount is $5,000 for S-corporations or LLC's that file as an S-corp. There is no minimum amount for C-corporations or insurance companies.
- To participate, your company does not have to be based in Arizona provided it owes an Arizona tax liability.
- The donation approval process (outlined below) opens the first week of July and closes when the statewide cap is met. If the cap is not met in July, additional approval cycles will open based on the credit limit available. APSTO will continue to accept corporate Donation Request Forms until the annual cap is met.
- Your company may recommend a specific school or multiple schools to benefit from its donation but not a specific student. APSTO is not tied to any single school denomination or organization. We are happy to work with all qualified schools in the state of Arizona.
- The corporation may carry forward any unused tax credits for up to 5 years.
The Arizona Department of Revenue (ADOR) opens the approval process for fiscal year 2023-2024 on July 3rd. The Statewide Cap is $158M for Low-Income and $6M for Disabled/Displaced.
Interested businesses should contact APSTO prior to June30th for the opening approval cycle.
Program Process & Timelines
First:
Identify your company’s corporate income tax liability
and determine how much you would like to donate vs pay to the state this fiscal year.
Submit the Donation Request Form
to APSTO no later than June 30th if you would like your Approval Request submitted as soon as the cap opens in July.
Then:
APSTO will submit a Donation Approval Request
to the ADOR.
ADOR will respond to the request for pre-approval
within 20 days. The request will be approved if the state cap has not yet been met. If the cap has been met, ADOR will create a waitlist based on the order the requests are received.
APSTO will notify your company of their approval
the same day ADOR sends its approval. Your company will have 20 calendar days from approval date to submit the credit donation to APSTO.
Once APSTO receives your donation funds
ADOR will be notified and APSTO can provide your company a receipt to claim your tax credit.
APSTO issues tuition scholarships
to qualifying students.
For your convenience, you can find details, instructions, and any forms you will need to file for your tax credit on our website at
Claim Your Credit.
Your Employees Can Participate Too!
Arizona’s withholding tax reduction law A.R.S. 43-401 allows individuals to authorize their employers to send their state withholding tax amount to APSTO through our Payroll Withholding Program – meaning your employees can turn their Arizona tax liability into tuition scholarships without affecting their take home pay!
Please consider partnering with APSTO for Payroll Withholding. You will not only be providing a valuable benefit to your employees but a priceless service to your community! If you’d like more information about this program, please visit our Withholding Program page or give us a call.
Questions? Call 480-256-1001 or email info@APSTO.org