Arizona’s Tax Credit Programs

These Arizona tax credit programs are education plans designed to help low income families and families with disabled/displaced children obtain the best education for their children.

• Under these programs (A.R.S. 43-1183), Class C Corporations, Insurance Carriers, S Corporations and certain LLC’s that owe Arizona corporate income tax or insurance premium taxes can redirect a portion, or their entire tax obligation to school tuition organizations (such as the Arizona Leadership Foundation.)

• These school tuition organizations then award K-12 scholarships to students qualifying for the low income or the disabled/displaced program.

• Participating corporations redirect funds they must already pay to the state, enabling them to help low-income children achieve greater educational excellence at NO COST to the corporation.
As a result, the program is paving the way for an educated workforce that will greatly contribute to the betterment of our communities.

The Simple Process

• To take advantage of this tax credit, the corporation contacts our team and pledges to contribute $X amount.
• Arizona Leadership Foundation then completes the application for the corporation and submit it to the Arizona Department of Revenue (ADOR). If the program cap has not been met, the ADOR approves the request within 20 days.
• The corporation has 20 days from the date of approval by the ADOR to make the contribution to The Arizona Leadership Foundation.
• The corporation takes the premium tax credit on its tax return, but may carry any unused credit forward for up to five years. The corporation may take either the federal nonprofit donation deduction or the Arizona state credit, but not both.

Program Cap and Fund Designations for the Fiscal Year 2024, School Year 2023-24