Corporations
Do you pay corporate taxes to the state of Arizona? An exciting opportunity is available to your company through the Arizona state tax code allowing you to make a difference in education!
The Corporate Income Tax Credit Program has already given hope to so many children and continues to be an integral part of Arizona’s school choice movement.
The 2024-25 fiscal year Corporate Low-Income initial cap is set at $135 million and Corporate Disabled/Displaced cap is $6 million.
As of 9/24, we still have “Corporate Low-Income” and “Corporate DD” tax credits available. These corporate tax credits are no net cost to you as a S corp, but actually save you money, if filing as a C corp. Call us today to learn more!.
If you are a prior corporate donor, you should have received an email request for continued support this fiscal year. As a prior corporate donor, you can just let us know how much you would like to pledge and we take care of the rest. You will receive a confirmation of your pledge within the hour of contacting us. Please call if you have any questions.
To make a corporate/business tax credit pledge, you can call us at 480 478-0624 or make a pledge online, or email our help desk at helpdesk@az4education.org.
Great opportunity for your company!
In 2006, the Arizona Corporation School Tuition Tax Credit Law, A.R.S. Section 43-1183 was passed to allow corporations to receive a tax credit against the state income tax they owe to help children in low income families receive a quality private education. There is an annual state-wide cap starting July 1st of every fiscal year that is allocated on a first-come-first-serve basis. The maximum contribution for a corporation is the business state tax liability. You have to pay taxes anyway, why not support education and help families get a choice!
Who Benefits?
The Corporate Tax Credit benefits low-income families, displaced students and/or students with disabilities. A corporation can even suggest that the contribution be applied to our general fund or school fund. The school fund allows you to even suggest a specific school, type of schools or combination of options that support your goals in your community.
AZ4Education supports all private K-12 schools so you have more choices across the state.
This is truly the easiest contribution a business can make resulting in no net cost to the company. Help make a difference in Arizona education, your community by supporting school choice with income tax dollars.
Who is eligible to contribute?
- Any ‘S’ corporation or entity that files as an ‘S’ corporation, with a tax liability in Arizona. Note: you may “pass through” your liability to individual shareholders or partners.
- Any ‘C’ corporation with a tax liability in Arizona.
- Any insurance company with a premium tax in Arizona.
How does it work?
- Your business decides on amount to contribute and contacts Az4Education to make donation pledge.
- Az4Education submits Corp Tax Credit Form to ADOR. The process starts first week in July of every year.
- ADOR approves pledges on “first come, first serve” basis, until tax credit cap is reached.
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Your business has 20 days from date of approval by ADOR to transfer approved funds to Az4Education
- Az4Education begins awarding tuition scholarships to low income or disabled/displaced students
Additional Information
- ARS §43-1089 – Private School Tax Credit
- ARS §43-1183 – Corporate School Tuition Tax Credit
- ARS §43-1184 – Corporate Disabled/Displaced Tuition Tax Credit
- ARS §20-224.06 – Premium tax credit for low-income scholarships
- ARS §20-224.07 – Premium tax credit for displaced students and students with disabilities
- Title 43, Chapter 15 – School Tuition organizations for Corporate Contributions
- IRS Rev. Proc. 2019–12 – Explanation of IRS Safe Harbor (refer to page 8)
History of Corporate Low-Income Caps by Fiscal Year
| Fiscal Year | Low Income Cap |
| 2023-2024 | $ 158,476,605 |
| 2022-2023 | $ 142,113,725 |
| 2021-2022 | $ 135,346,405 |
| 2020-2021 | $ 123,042,186 |
| 2019-2020 | $ 106,993,205 |
| 2018-2019 | $ 89,161,004 |
| 2017-2018 | $ 74,300,837 |
| 2016-2017 | $ 61,917,364 |
| 2015-2016 | $ 51,597,804 |
| 2014-2015 | $ 42,998,170 |
| 2013-2014 | $ 35,831,808 |
| 2012-2013 | $ 29,859,840 |
| 2011-2012 | $ 24,883,200 |
| 2010-2011 | $ 20,736,000 |
| 2009-2010 | $ 17,280,000 |
| 2008-2009 | $ 14,400,000 |
| 2007-2008 | $ 12,000,000 |
| 2006-2007 | $ 10,000,000 |
