Exciting news for Arizona Business Owners regarding Federal Tax Deductions!

Exciting news for Arizona Business Owners regarding Federal Tax Deductions!

The US Treasury Department has introduced proposed amendments clarifying that Arizona S-Corps or LLCs that file like an S-Corp can deduct state tax credit donations on Federal tax returns. The clarification holds up that Section 162 of the Tax Code will allow eligible businesses that make an Arizona tax credit donation to deduct the donation on their federal taxes as a business expense. 

The business must believe that there is a reasonable expectation that their donation will give them name recognition or goodwill in the community. Alternatively, the business must believe they have a reasonable expectation that the donation will enhance the community and bring employment opportunities to the business with a possible financial return in the future. 

The corporate tax credit cap for 2019-2020 has already been met. Arizona eligible businesses are already planning for next year's Corporate Donations which opens up on July 1, 2020. As always, please confirm with your CPA or tax preparer that this opportunity is best for you. 

For the corporate donation application, please click here: Corporate Donation Application

For the full notice of amendments, please click here: Proposed Amendments

For more information on corporate tax credit donations, go to www.azcorporatetax.org, call 520-512-5438 or email our Corporate Coordinator, Wendi Hauser wendi@ibescholarships.org.

Arizona Offers Five Different Tax Credits

Arizona taxpayers are extremely fortunate that our state offers so many tax credit opportunities. We can have a say in how our Arizona State tax dollars can have the biggest impact on our own communities.

The Private SchoolTuition Tax Credit is one of the five tax credits Arizona has available for you to choose. The other tax credits available are the Foster Care Tax Credit, Charitable Organization Tax Credit, Public School Tuition Tax Credit, and the Military Family Relief Fund Tax Credit. Each one differs on how a taxpayer can contribute, so please click on each tax credit for more information.

The Institute for Better Education offers the Private School Tuition Tax Credit to ensure all children have the best chance for success. Not all children learn the same way and this is especially true for children with special needs. Private schools that specialize in educating children with special needs tend to be expensive; ALL children with special needs should have the option of attending a school that exists for them. Not only can individual taxpayers choose to help our youth, so can eligible Arizona businesses. There are still Corporate Tax Credits available this year also! Contact the Corporate Program Coordinator, Wendi Hauser, at wendi@ibescholarships.org for more information.

Contact IBE to find out how you can help change the lives of Arizona children. We have the tools you need to Make a Difference!

A Thank You to Our Corporate Donors from Our Executive Director

I, along with our amazing staff, would like to personally thank all of our Corporate Donors who put Arizona children first! These businesses utilized their State tax liability towards scholarships for our low-income and disabled/displaced students.  I am very happy to announce that IBE received 100% approvals from the Arizona Department of Revenue during the first round of submittals.  Our Corporate Applications were in the first 30% of approvals AND we received the top spot.  Arizona thrives when our children are educated in the way that is best for their individual and unique needs and they, in turn, give back to our community.  I know the families and schools we serve join with us as we express our appreciation for those investing in our children to make a difference in their lives.  

Kimberly J. Kirschner

Executive Director
Institute for Better Education
(520)512-5438

Making a difference in the lives of Arizona children

Corporate Tax Credit Application Deadline June 30th

Companies can receive a dollar-for-dollar tax credit that will help children with their education. A simple one page application is available through IBE with a coordinator dedicated to making the process simple and easy to navigate for accountants and corporate tax payers. One minute of your time can make a huge difference in the lives of children and also help you save on taxes and direct your tax dollars.

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.

Have you considered the impact you could make as a corporate donor?

Philanthropic

• Your company can help disadvantaged children move into the schools that best meet their unique needs.
• Your company can help displaced children who are now, or have been, in Arizona’s foster care program to enroll in the private school best suited to help them.
• Your company can help children with a variety of learning disabilities succeed to their highest potential.
• Your company can join with others statewide that want to be part of the solution – and are doing something about it.
• Your company will give families hope.

Financial

• Your company will receive a dollar-for-dollar tax credit for its donation.
• Your employees will appreciate having their children’s private school aided by your company.
• Your company will be listed as a donor who cares on the plaque in our foyer.

Community

• Your company can recommend a school to benefit from your donation. Local businesses helping local students! Schools will be notified of your generous donation, unless you choose to remain anonymous.

Thousands of kids are depending on you……

please consider participating in the

Arizona Corporate Tax Credit Program today!