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.

2019 Tax Credit Deadline Still April 15th, 2020

With the recent announcement from Governor Ducey’s office that our 2019 Arizona State Tax deadline has been extended to July 15, 2020, many Arizona taxpayers are wondering if this extends the deadline to make their tax credit donations.  We were informed Monday, March 23^rd, that this does NOT extend the tax credit donation deadline.  For any taxpayer who wants to direct their Arizona state tax liability to any of the four remaining tax credits allowed for 2019, they must make their donation on or before April 15, 2020.  

2019 Arizona Tax Credit Donation Deadline

–April 15, 2020

2019 Arizona State and Federal Tax Filing Deadline - July 15, 2020

This would include:  

 Private School Tax Credits 

  Public School Tax Credits

             Charitable Organizations Tax Credits

       Foster Care Tax Credit

These non-profit tax credit organizations exist to give our state’s most vulnerable population hope for their future.  During these extremely uncertain times, you can help ensure that our children are comforted in the knowledge that the world they are familiar with, whether it is their school, their home or their family, will remain constant for them. These four tax credit programs above can help to provide this comfort. 

The great news is you can make your tax credit donation today, and claim the credit when you file your Arizona state taxes. Our new donation page takes just a few minutes to complete and you can even pay with your credit card.   IBE will be here to help you navigate making your donation and getting your tax credit receipt. We are available via phone, email, or chat on our website. IBE will even be available through our website chat until midnight on April 15^th for your convenience.

You are making a difference in a child’s life, helping them thrive at one of our amazing Arizona private schools.  Most of the children we assist are from low-income families and they are counting on your help. 

Please follow IBE's Facebook page to get the latest news and share our posts to help spread the message about the tax credit deadline.

I hope you will join IBE in helping Arizona children and families.

Thank you for putting our Arizona children first.

IBE Covid-19 Update

As our nation pulls together to tackle Covid-19, IBE will be doing our part to keep our employees and community safe. Our office will be closed to the public starting Tuesday, March 17th. Rest assured, IBE is still open for business as usual.  You may reach us at our regular business number, 520-512-5438 from 8am-4pm M-F. If we are experiencing a high volume of calls, please leave a message and we will get back to you as soon as possible.  You may also email us at services@ibescholarships.org or take advantage of our chat feature through our website at ibescholarships.org.  On our website, you will also have access to general information and are able to make a donation on our easier-than-ever donation page.  If you are registered on our website, you have access to your tax credit receipts, as well.  Our goal is to continue to serve our donors, schools, and families with the best customer service possible and we ask for your patience as we navigate this difficult time together.

Private School Tax Credits Save the State of Arizona Millions of Dollars

IBE is a proud member of ASTOA-Arizona School Tuition Organization Association. ASTOA not only advocates for STOs, private schools and all things related to tax credits and school choice, they are also instrumental in keeping their member STOs up-to-date on tax credit law.  In order to help Arizonans understand the benefits of tax credits, ASTOA recently published a white paper, or informational report.  This report highlights how tax credits give lower income families the opportunities offered by school choice while saving the state of Arizona millions of educational dollars. To help our community continue to advocate for school choice options, we have included this link. 

The critical points reflect that STOs and tax credits:

• Allow tens of thousands of students to attend a private school
• Provide a savings to the state of Arizona at least $34.6 million, and potentially upwards of $285 million per year, compared to the cost of educating those students in a public school
• Award 60%-70% of scholarships to low-income families
• Are the primary reason that approximately two-thirds of students in private schools are able to attend
• Achieve a budget-positive result for the State of Arizona
• Are a win-win for Arizona children

Summary findings based on analysis performed by Deborah Sheasby with facts obtained from reports from the Arizona Department of Education, Joint Legislative Budget Committee, and Arizona Department of Revenue.

This report has been released to legislators, staff, policymakers and others who are elected to make a difference in Arizona children’s lives. 

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