Your Corporation Can Help Low-Income Children at NO COST
The Arizona Leadership Foundation proudly provides scholarship assistance to private schools and Lexie’s Law schools throughout Arizona with no preference to religious or political affiliation. We believe parents should have a choice when it comes to the education of their children.
Under these programs (A.R.S. 43-1183), Class C Corporations and Insurance Carriers 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 federal government’s free or reduced lunch program or the disabled/displaced program. The corporation, in turn, will receive a 100% tax credit for every dollar it donates. 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.
How Can Your Class C Corporation or Insurance Carrier Help Students?
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 2017-18 Fiscal Year
The student is eligible if they meet the Income Requirement
Annual Family Gross Income Allowable
and one of the following:
Student attended an Arizona public school as a full-time student for at least 90 days of the prior fiscal year or one full semester and then transferred from the public school to a private school; Those students who transfer to a qualified private school after the first full semester are eligible to receive a scholarship that same academic year. OR
Is enrolling in a private school kindergarten; OR
Is enrolling in a private preschool program for students with disabilities. Student must have an IEP or MET issued by an Arizona public school; OR
Is a dependent of a member of the armed forces of the United States who is stationed in Arizona pursuant to military orders; OR
Received a low-income corporate scholarship (under above criteria) or an original individual scholarship or a switcher individual scholarship in a prior year and the child continued to attend a private school in subsequent years.
A School Tuition Organization cannot award, restrict, or reserve scholarships solely on the basis of a donor’s recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent. (A.R.S. 43-1089)