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$62 million donated to Ariz. K12 scholarships for low-income students; Donation cap hit on day onePHOENIX (JULY 18, 2016) - In a matter of hours, the Arizona Department of Revenue received just under $62 million in donation applications to the Corporate Tuition Tax Credit program after the new fiscal year began, hitting this year’s donation cap in record time. The program provides scholarships to Arizona’s low-income students to attend private school through the state’s School Tuition Organizations (STOs). The state’s large and small corporations with a state tax liability can opt to donate to STOs and receive a dollar for dollar tax credit.
"It is amazing to see the undeniable support from the business community for a program that gives kids the chance to attend some of Arizona’s best schools,” said Kim Martinez, Arizona Federation for Children communications associate. “Every scholarship is life-changing for low-income and working class families who could never afford tuition for their child on their own.”
This is the highest donation cap to date for the program, so the fact that the cap was hit so quickly demonstrates an impressive upward trend in funding for the scholarship program. Last year, the donations capped at just under $52 million and the cap was reached within three days of the fiscal year starting.
The Corporate Tuition Tax Credit cap grows by 20 percent every year. On July 1 2017, the tuition tax credit opportunity will reopen with a cap of approximately $75 million.
The Arizona Federation for Children is the state affiliate of the American Federation for Children, the nation's voice for educational choice.