Corporate FAQ

In 2006 and 2008, the Arizona State Legislature respectively passed into law, the Low-Income Corporate Tax Credit Program A.R.S. 43-1183 and the Disabled/Displaced Corporate Income Tax Credit Program A.R.S. 43-1184, which allow a corporation to make a contribution to a qualified State Tuition Organization (STO) like Arizona Private School Tuition Organization (APSTO) and receive a dollar-for-dollar state tax credit up to the total amount of its tax liability.

When your company participates in this program, you enable us to turn your tax liability into scholarships, providing much needed assistance for low income or disabled and displaced children attending private schools in Arizona.

Because this is a dollar-for-dollar credit against taxes your company already must pay to the state, it will not 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.

Corporations receive a 100% credit against their Arizona corporate tax liability for donating towards either of tax credit programs. The differences between them are the size of the statewide donation caps as well as which students are eligible to receive the scholarships.

Corporations do not have to be based in Arizona to participate in this program. The only requirement is that they have an Arizona state income tax liability.

• Complete and submit a Donation Request Form online; OR
• Contact APSTO at info@APSTO.org or call 480-256-1001 and we will be happy to send you a Donation Request Form; OR
• Print the application found at this link: Printable Donation Request Form.

If you have any questions please call, we are always here to help.

Corporations may donate up to their state income tax liability for the given tax year, provided the statewide cap has not been met or exceeded by the contribution. If a corporation donates more than their tax liability, it can be carried forward for up to 5 years.

There is no set maximum a corporation can redirect and donate to receive a dollar-for-dollar tax credit. Instead, the Arizona Department of Revenue (ADOR) imposes an annual statewide donation cap that all corporate donors combined can contribute to this program.

Each year, the ADOR sets the aggregate cap for both corporate tax programs. The annual limit for the Low-Income Corporate Tax Credit increases 20% each year, while the Disabled/Displaced Corporate Tax Credit donation limit remains constant at $6M.

For fiscal year 2022, the statewide cap for Low-Income Corporate is $142M.

The statewide cap opens the first week of July each year and remains open until the cap is met. The cap is usually met quickly, sometimes within minutes of opening.

Due to the aggregate cap, all donations must go through an approval process. This program is available to corporations on a first come, first serve basis, so it is important to understand the process and timelines.

In the event a request is received for an amount greater than the remaining cap, ADOR will only approve the remaining amount. For example, if $500,000 is left under the cap and your request is for a greater amount, ADOR shall approve only $500,000.

You or your tax advisor will need to file an Arizona tax Form 335 or 341 with your corporate return (Form 120) to claim the credit. Depending on your corporate structure, the designation chosen for the donation (Low-income A.R.S 43-1183 or Displaced Students/Students with Disabilities A.R.S. 43-1184) will determine the form(s) to file with your return. You may visit the Arizona Department of Revenue site to obtain these forms or go to Claim Your Credit on our site. All 335 and 341 forms for each corporate structure are provided with the needed instructions.

If your company designates the Low-Income Corporate Tax Credit for your donation, the funds are dedicated exclusively to support the tuition costs for low income or underserved students. If your company designates the Disabled/Displaced Corporate Tax Credit for your donation, the funds are awarded to students who have been identified as having a disability (physical, learning, or emotional), or students who are or have been in the Arizona foster care system.

Due to state law, a corporation cannot designate a specific student, but it can recommend a specific school or multiple schools.

APSTO is not tied to any single school, denomination, or organization. We will work with every qualified school in the state of Arizona.