Arizona’s Corporate Tax Credits
for
Private Schools
Corporate Low-Income Cap*
As of April 10, 2024 $45,769,493 Left (FY 2023-2024)
Displaced/Disabled Cap*
$6,000,000 (FY 2023-2024)
What AZ businesses qualify for this program?
- C-Corporations
- S-Corporations
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Insurance companies that pay premium taxes in AZ
- LLC's that file as an S-Corp
What if my S-Corp or LLC doesn't pay "corporate taxes"?
- Your business can pay your "pro rata share" of personal tax liability and pass the credit to you
How does a corporation enroll in this program?
Who will benefit from the donation?
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Disadvantaged AZ children in an unsuccessful public school that fails to meet their needs.
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Displaced children in Arizona’s foster care program who need a school uniquely suited for them.
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Children with learning disabilities that need a specific school to help them function at their fullest capacity.
How does this benefit my business?
- It is a dollar-for-dollar tax credit, it costs nothing!
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Your employees and customers appreciate a company that makes a local impact
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You are investing in the next generation of leaders
- We will publicize your company's generous contribution in support of AZ's children
How much can a corporation give?
-
Up to the corporation’s total tax liability for the current year
- S-Corps must give a minimum of $5,000
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Total donations cannot exceed the cap* at the time of the submission of the approval form
Corporate Donation Procedures
First, determine:
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The corporation’s tax liability for the current year.
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How much to donate.
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If you would like your funds to go to needy students in a particular school or group of schools. (Please note: final determination of scholarships are at the discretion of the TOPS for Kids board.)
Then:-
TOPS for Kids will request approval from the Department of Revenue.
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The Department of Revenue will respond within 20 days with its determination of the corporation’s standing in Arizona, and if the fiscal cap has been met or not.
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When TOPS for Kids receives the approval letter from the Department of Revenue, it will be forwarded to the corporation, and you will have 20 days to get the designated funds to TOPS for Kids.
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Once the contribution has been completed, the corporation will receive a tax receipt from TOPS for Kids to use when filing Arizona state taxes.
A Corporate Low-Income Scholarship Recipient must...
have a family income which does not exceed 185% of the income required to qualify a child for reduced price lunches
AND must meet 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; OR
• Is enrolling or currently enrolled in a private school kindergarten; OR
• Is enrolling or currently enrolled in a private preschool program for students with disabilities (preschool student must have an MET or IEP from an Arizona public school; a 504 does not meet the requirement); 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 one of the above criteria in a prior year and the child continued to attend a private school in subsequent years; OR
• Received 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 Disabled/Displaced Corporate Scholarship Recipient must…
meet ONE of the following prerequisites:
• Student has a MET or IEP from an Arizona public school (for preschool and K-12); OR
• Has a 504 plan from an Arizona public school (for K-12 only); OR
• Was placed at one time in the Arizona foster care system (for K-12 only and to be verified by the
Arizona Department of Economic Security).
Scholarships may not exceed $6,300 for grades K-8 and $8,100 for grades 9-12 for school year 2024-2025
A Qualified School means…
a preschool that offers services to students with disabilities, nongovernmental primary or secondary school that is located in Arizona and that does not discriminate based on race, color, disability, familial status or national origin. All teaching staff and personnel that have unsupervised contact with students are required to be fingerprinted. Qualified school does not include a charter school or any program operated by a charter school. This means that a private school program which operates in the same facilities as the charter school operates and a private school program that is administered by the same staff as employed by a charter school is not eligible for private school tuition organization scholarships.
If you would like to print and mail a corporate contribution form choose this link: (please complete the form and email it to
services@topsforkids.com).
Corporate Printable Application
If you would like to complete a corporate contribution form online choose this link:
Corporate Online Application
Or click on the following for additional information:
Corporate Information Brochure