In 2015, Arizona legislature passed a Bill that was signed by Governor Ducey allowing S-Corporations as well as LLCs that file taxes as an S-Corporation, to make a tax credit contribution to a qualified School Tuition Organization (STO) and receive a dollar-for-dollar tax credit. This tax credit flows through to the shareholders in a pro-rata share. This is the envy of many states.
These tax credits are not only for S-Corporations, but also C-Corporations and insurance companies that pay premium taxes in Arizona. Last year, Arizona businesses were so on-board with this opportunity to make a difference in the lives of our children, that the Corporate cap (over $94 million) was met in minutes once Corporate donation applications were accepted by the Arizona Department of Revenue.
This year, all Corporate donation applications must be to your chosen STO by June 30th so they may be submitted by July 1st. We anticipate this cap to be met again the first day of the cap opening so time is of the essence.
Who can donate?
➢ C-Corporations
➢ S-Corporations
➢ LLCs that file as an S-Corporation
➢ Insurance companies that pay premium taxes in Arizona
What program can your donation go to help?
➢ Low-Income Corporate Tax Credit Program (children from low-income families)
➢ Disabled/Displaced Corporate Tax Credit Program (children with disabilities or have ever been in the Arizona Foster Care system)
When does the donation application need to be completed?
➢ The cap opens July 1st, so all applications need to be submitted to your chosen STO by June 30th for processing.
Why IBE?
➢ Unlike other STOs, IBE awards 95% of all Corporate donations
➢ IBE has been providing tax credit scholarships for over two decades
➢ Works with over 290 diverse schools
➢ Businesses can recommend a school(s) or designate to the most needy fund
➢ IBE has a designated Corporate Program Coordinator to answer questions and help with the entire process
➢ Simple process with a one-minute, one page application
How often do we get the chance to help Arizona children reach their fullest potential without costing a single penny?
For more information, please contact Wendi Hauser (wendi@ibescholarships.org) so she can assist you in this easy process. You can also visit our website (azcorporatetax.org) for more information.
