Wednesday, December 18, 2019

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.

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