Corporate Tax Credit Cap Opening Soon!

Now, more than ever your corporate tax dollars are needed by Arizona children and private schools.

Help your clients 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 taxpayers. One minute of your time can make a huge difference in the lives of children and, also, help your client save on taxes and direct their 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 for S-Corporations, C-Corporations, and insurance companies that pay premium taxes in Arizona. The Corporate cap in Arizona is just over $128 million. The cap has been met in previous years in just minutes. Last year, while it took 3 rounds to award all funds, we expect it to be another year of the cap being met in minutes. For all three rounds of last year’s Corporate donation season, IBE had all their corporate donations accepted in the top 30% and were in the #1 spot in all three rounds. This year, all Corporate donation applications must be to your chosen STO by July 5th so they may be submitted by July 6th.

Who can donate?

·         C-Corporations

·         S-Corporations

·         LLCs that file as an S-Corporation

·         Insurance companies that pay premium taxes in Arizona

Why IBE?

·         IBE had all corporate donations accepted in the top 30% to AZDOR

·         IBE had the #1 spot in all three AZDOR rounds in 2019

·         IBE 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

·         IBE has a simple process with a one-minute, one-page application

·         Pay your corporate tax liability with a credit card

Types of Programs

·         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)

Free Corporate Tax Webinar June 11th (10am) for Arizona businesses & CPAs. Call to register.