Corporations & Donors

Your Corporation Can Help Low-Income Children at NO COST

September 2015 — Infinity Insurance partnered with Arizona Leadership Foundation to provide books to low-income families encouraging bilingual literacy. Learn more about the program.

Corporate Benefits of the Arizona Corporate Tax Credit Scholarship Program:

  • Receive a 100% tax credit for every dollar donated.
  • No cost – Participating corporations just redirect funds they must already pay to the state.
  • The program is paving the way for an educated workforce that will greatly contribute to the betterment of our communities.

Participating companies do not have to be domiciled in Arizona; the only requirement is that they have tax liability with the state. Dollars can fund scholarships for children in a specific region(s), schools or across the state.

The Arizona Leadership Foundation serves private schools throughout Arizona with no preference to religious or political affiliation.

 

How Can Your Class C Corporation or Insurance Carrier Help Students?

5 Easy Steps

  1. Identify your company’s corporate income tax liability and determine how much you would like to donate versus pay to the state this fiscal year. (Your company can donate the entire corporate tax liability amount).
  2. Contact The Arizona Leadership Foundation (ALF) at info@arizonaleader.org to start the process.
  3. Arizona Leadership Foundation will file a one-page form with the Department of Revenue (DOR), asking for approval for the donation/credit. We will send you a copy of this form. The DOR will respond within 20 days on whether or not funds are available under the current fiscal year cap.
  4. Within 10 days of DOR approval (DOR and ALF will notify you), your company must send a check or wire to the Arizona Leadership Foundation for the contribution.
  5. When you file your company’s taxes, you will take the corporate income tax credit on the Standard 120 Form and file a 335 Form as well listing the credit amount.*

Please consult your tax adviser for advice on filing and using your credit. This is only a guide; it does not constitute tax advice.

 

Frequently Asked Questions

Why does Arizona allow this?

The program allows families struggling in a tough economy the opportunity to send their children to the school of their choice, no public monies are used, and the economy gets a boost from the additional economic activity. Arizona has also seen the benefits of the program and believes it serves as a catalyst for a well-diversified workforce. As a result, they have increased the cap from $5 million in 2007 to around $74.3 million for Fiscal Year 2017/2018.

Where does the money go?

Students apply to the Arizona Leadership Foundation for a scholarship to attend the private school of their choice. Our program awards scholarships based on three points: qualifying for financial need, prior academic achievement and extracurricular activities that build lifelong leadership skills. Scholarships are also available to disabled/displaced students.

Private vs. Public vs. Charter

This program isn’t about which education system is superior. It is about empowering parents to have choices regardless of income and finding the place where every student learns best. Each child will thrive in a different educational environment (public, charter or private) but parents must have the ability to choose which one will be most effective for their son or daughter. This program guarantees parents will have that choice. We would like to emphasize that your corporation is not taking a single cent away from public or charter education by contributing the credit.

Can I direct my credit to a particular student?

Arizona law states that a corporation may direct which schools receive their scholarship tax credits but may not specify which students receive the scholarships.