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By: Elizabeth Dreckman
Did you know that companies that do business in Arizona are eligible to participate in Arizona’s Corporate Tax Credit Program? This program allows a company to redirect its state tax liability to a School Tuition Organization, like Arizona School Choice Trust. The company receives a dollar-for-dollar tax credit, and Arizona School Choice Trust uses these funds to provide life-changing scholarships to low-income children, allowing them to attend private school. The company pays nothing extra – it’s free to participate in the Corporate Tax Credit Program.
Consider giving back to the community where you do business! Your company can even designate the scholarships to certain schools or parts of town. This program allows companies to invest in their communities, improve education in Arizona, and do so at no cost! Your company can publicly announce your participation or choose to remain anonymous. We have hosted many press conferences with check ceremonies promoting a company’s contribution. We work closely with our corporate donors to share stories of the impact their donation has made.
Why choose Arizona School Choice Trust? We are the oldest and most experienced School Tuition Organization in Arizona. Founded in 1993, we strongly believe that every child should have the chance to succeed. Our mission is to provide low-income children with hope and opportunity through educational options. One hundred percent of our scholarship recipients are from poor and working-class families and we give parents the option of choosing any private school in the state. For our dedication to serving the underprivileged, Arizona School Choice Trust was recently ranked as the #1 School Tuition Organization in the State of Arizona.
Here are the easy steps to participate:
1. Identify your company’s corporate tax liability.
2. Determine how much you would like to donate versus pay to the state this fiscal year. (Keep in mind that your company can donate the entire corporate tax liability amount.) There is a statewide cap on the corporate tax credit. For 2012 that cap is $24.833 million. This increases by 20% each year.
3. Contact Arizona School Choice Trust, informing us of the amount you wish to donate. You can send a letter to: ASCT, P.O. Box 1616, Glendale, AZ 85311. Or contact us by e-mail at firstname.lastname@example.org. Include your company’s name, EIN#, amount you wish to donate and contact information.
4. Arizona School Choice Trust will file a one-page form with the Department of Revenue, asking for approval for the donation/credit. We will send you a copy.
5. The DOR will respond within 20 days on whether or not funds are available under the current fiscal year cap.
6. Within 10 days of DOR approval (The DOR and Arizona School Choice Trust will notify you), your company must make the contribution to Arizona School Choice Trust.
7. When you file your company’s taxes, you will take the corporate income tax credit on the appropriate forms.
The scholarships provided by Arizona School Choice Trust, through Arizona’s Tax Credit Programs, ensure all of Arizona’s children have the opportunity to receive a great education. We have hundreds of success stories. This year we are particularly proud of longtime scholarship recipient Jorge Solis. Jorge just graduated from high school and will be attending Arizona State University. He was also recently chosen to participate in the prestigious Barrett Honors College. Mr. and Mrs. Solis had this to say about the opportunity provided to their son, “We are thankful to Arizona School Choice Trust for making a quality education possible for him! Thanks a million for investing in children!”
Please consider partnering with us and investing in more children like Jorge. Every year we have thousands of applicants and all too often, a long waiting list. Your corporate contribution will go a long way to seeing that every child has their chance at success.
For more information, contact
*Please consult your tax advisor for advice on filing and using your credit. This is only a guide and it does not constitute tax advice.