Arizona Tuition Tax Credit Program
Nuts and Bolts of the Arizona Private School Tuition Tax Credit Law

  • House bill 2074: Arizona Private School Tuition Tax Credit Law was signed in 1997.

  • An Arizona taxpayer can make a tax credit donation to a school tuition organization and receive a dollar-for-dollar tax credit against their Arizona state income tax.

  • Individuals and married couples may donate up to the current max donations, as long as it doesn’t exceed their tax liability.

  • These tax credit donations are awarded as tuition scholarships to students at Emmaus.
School Tuition Organizations (STOs)

  • An STO serves as a “clearing house” that accepts tax credit donations and distributes funds to schools.

  • Each STO has its own procedures/applications/due dates/award periods.

  • Applications are submitted once a year and remain valid for that current school year.

  • Students can receive multiple scholarship awards from more than one STO.
ACSTO - Arizona Christian School Tuition Organization

  • The STO that is partnered with Emmaus and the other WELS Lutheran schools in Arizona is the Arizona Christian School Tuition Organization (ACSTO).

  • Website: http://www.acsto.org/

  • Phone Number: 480.820.0403     Fax: 480.820.2027

  • Email: general questions - social@acsto.org

  • Office Address: PO Box 6580, Chandler, AZ 85246 

  • E-mail Address for Sending  Applications: applications@acsto.org
Three Ways to Receive Tax Credit Scholarships
Original Tax Credits

  • Recommend a Specific Student

    • Tax Year 2016 Maximum Donation Amounts: $2,173 for married couples filing jointly and $1,083 for single taxpayers.

    • Tax Year 2017Maximum Donation Amounts: $2,177 for married couples filing jointly and $1,089 for single taxpayers.

  • Non-Recommended (need-based)

    • Donations directed to Emmaus, instead of a specific student, will be awarded to Emmaus students by ACSTO or another STO based on need.

  • Action Steps

    • Fill out an application for your family for the upcoming school year.

    • Network with school families who have been successful in receiving Tuition Tax Credits.

    • Create a list of potential contributors.

    • Gather literature to handout.

    • Become familiar with the Tuition Tax Credit program.

    • Ask contributors on your list to participate in a variety of ways.

    • Follow up with contributors.

    • Be excited!
Plus (Overflow or Switcher) Tax Credits

  • The state of Arizona passed a new tax credit in 2013 called the Plus (or Overflow or Switcher) Credit.

  • The Plus Program differs from the Original Program because not all students who fill out an application are eligible to receive a scholarship. Your child qualifies for a Plus Scholarship if they meet one of the eligibility requirements listed below.

  • After donating the maximum amount allowed under the original tax credit program, taxpayers are now able to make an additional tax credit donation, as long as it doesn’t exceed their tax liability.

  • Eligibility Requirements

    • The student is transferring from a public or charter school to a private school. 

    • The student is enrolled in (or entering) Kindergarten at a private school.

    • The student is a dependent of a member of the United States armed forces stationed in Arizona.

    • The student has received a corporate scholarship from a School Tuition Organization

    • The student has received a PLUS Scholarship in the past.
Corporate Tax Credits

  • Arizona corporations can make a tax credit donation

  • Donations can be recommended for a specific school

  • Donations cannot be recommended for a specific student

  • Your child qualifies for a Corporate Scholarship if they meet the following eligibility requirements:

    • Meet the state mandated income cap AND

    • Are either:

      • entering kindergarten at a qualified  private school  OR

      • transferring from a public or charter school having attended 90 days or 1 full semester of the previous school year or current year  OR

      • disabled preschooler with a public school IEP  OR

      • dependent of an active duty military stationed in Arizona on order  OR

      • received a Corporate or Individual award in the previous school year
         

 


 
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Questions and Answers about Tuition Tax Credit
    Are national corporations eligible to make a corporate donation?

  • As long as a corporation is filed as a C Corporation and has an Arizona state tax liability, they are eligible to make a corporate donation.
    Is there a corporate donation application for school families to fill out?

  • There will be a corporate donation application coming out soon. Corporate donations are new to the HELP foundation this year, so they are a few things that need to be put in order before families are able to receive the donations.
    Does a family look at their gross or adjusted gross income to see if they qualify for a corporate tuition tax donation?

  • The corporate donation income guidelines are based on 185% of the free to reduced lunch program used by the public school districts. A family must use their annual gross income for their entire immediate family when checking to see if they qualify for corporate tuition tax donations. Please note: in addition to the income qualification, a family must also meet one of the other five eligibility requirements.
    How are corporate donations divided up and who does the dividing?

  • An Arizona corporation may make a tax credit donation to an individual school, but not to an individual student. Corporate tax credit donations will be divided among eligible students at Emmaus based upon need. The amount of awards is decided by a committee at the HELP Scholarships Foundation.
    Is there a max donation for a corporation?

  • There is no maximum donation for a corporation, other than the total of their tax liability. The only other things that would prevent a corporation from donating up to their full tax liability is if the sum of all corporate tax credit donations in the state of Arizona reaches the max set by the corporate tax law. At the middle of July 2014, the remaining amount that could be donated by Arizona corporations was about 23.5 million dollars.
    What qualifications does a corporation need to meet to be eligible for corporate tax donations?

  • To be eligible for Arizona Tuition Tax Credit Corporate Donations a corporation must meet the following criteria:

    • The corporation is filed as a C Corp (an LLC or S Corp is not eligible)

    • The corporation must have an Arizona state tax liability
    I know of a corporation that may be interested in making a corporate tuition tax credit donation. What should I do?

  • The HELP Scholarships Foundation is looking for corporations that may be interested in the Arizona Corporate Tuition Tax Credit program. Please share the name and phone number of a corporation you’d like to receive information about the program with the school office. We’ll be happy to pass it along to the HELP Scholarships Foundation. 
    Can a donor still make a donation if they are filing an extension?
  • Unfortunately, no. The law states that the donation must be made no later than April 15th in order to be claimed on the previous tax year.  
    What line on my Arizona tax form do I look at to determine my tax liability?
  • Your tax liability will be listed on your Arizona tax form. The line is different, depending on the tax form you file.

    If you file:
    • form 140, look at line 21
    • form 140A, look at line 22
    • form 140PY, look at line 24
    • form 140 EZ, look at line 11
    • form 140NR, look at line 24

Do you have a question that isn't listed here? Please email the question to our school office (office@emmauslutheran.com); we'll be happy to answer it for you.

Train a child in the way he should go, and when he is old he will not turn from it. ~ Proverbs 22:6