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 2023-2024, the statewide cap for Low-Income Corporate is $158M.
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.
The Arizona Department of Revenue (ADOR) will open 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 June 30th for the opening approval cycle.
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.