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!

Arizona Offers Five Different Tax Credits

The Private School Tuition Tax Credit is just one of the five tax credits Arizona has available for you to choose from. 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 below for more information. Also speak with your accountant or tax preparer for specific information about your taxes and personal state liability. Donate today! It's your choice.

Arizona Tax Credits	Due Date    (2018 Tax Year)	Filing Single Maximum	Married Filing Jointly Maximum
Private School Tuition Tax Credit	4/15/2019	$1,107.00	$2,213.00
Foster Care Tax Credit	4/15/2019	$500.00	$1,000.00
Charitable Organization Tax Credit	4/15/2019	$400.00	$800.00
Public School Tax Credit	4/15/2019	$200.00	$400.00
Military Family Relief Fund Tax Credit	12/31/2018	$200.00	$400.00
Total Tax Credit Available		$2,407.00	$4,813.00

December 3rd, 4pm-6pm

You are cordially invited to the premier grand opening event at our new location.

Please join us for our Open House!

Institute for Better Education

921 N. Swan Rd

Monday, December 3, 2018

4:00 p.m. to 6:00 p.m.

Ribbon Cutting Ceremony with Tucson Chamber of Commerce & IBE Board Members

at 4:30 p.m.

Light hors d’oeuvres and refreshments will be provided by Casa Molina

Mark Your Calendars for Giving Tuesday, November 27th!

Call our office at (520) 512-5438 or go online at ibescholarships.org to make your donation.

IRS Proposed Regulations May Affect Your 2018 Taxes

Your State dollar-for-dollar tax credit contribution may need to be made by Monday, August 27, 2018 if you are planning utilizing it for a 2018 Federal deduction

Yesterday, August 23rd, the IRS issued proposed regulations that could affect your ability to utilize your state dollar-for-dollar tax credit as a federal deduction if you itemize.  This is a proposed regulation at this time.  It states only tax credit contributions made after August 27, 2018 will be affected by this proposal if it is approved.  IBE is sending this information out to alert Arizona taxpayers so they can make informed decisions regarding their tax credits.  This in no way affects your ability to receive an Arizona state tax credit. 

Arizona has five different tax credit opportunities:

·         Public School

·         Private School

·         Military Family Relief Fund

·         Qualifying Foster Care Charitable Organizations

·         Qualifying Charitable Organizations

Here is a link to the Arizona Department of Revenue’s information regarding tax credits:

https://azdor.gov/tax-credits

Please keep in mind that these are only proposed regulations and are not final.  Our concern is if made final, the date of August 27, 2018 will already be passed and Arizona taxpayers will no longer be able to claim their tax credit as a federal deduction. 

Consult your tax advisor to determine if this proposed regulation will affect you.

Unprecedented $145 Million Submitted in Corporate Applications

Now that the dust has settled on the Corporate Donation Application period, we're able to look back at the magnitude of what happened. Over $145 million was submitted in almost 1500 applications between the Low-Income Corporate and the Disabled/Displaced programs. This amounts to over $50 million dollars over the cap available for this year! Applications up to the cap ($94 million total) were approved and the rest were wait listed. At this time, the AZDOR has approved some of the wait listed applications and we are expecting more to be approved. If you did not get your application in before the July 2nd cap opening, you can still submit your application to be added to the wait list. There is still a chance that additional applications will be approved as the AZDOR receives notifications of corporate donations. If you would like to get a jump start on next year's cap, feel free to submit your application now to be held for next year. If you have any questions, please contact the Corporate Program Coordinator, Wendi Hauser at wendi@ibescholarships.org.