Transform Your Corporate Tax Credits Into Scholarships
Invest in Arizona education to inspire future generations.
Benefits of Redirecting Your Tax Dollars
How Corporate Tax Credit Works?
Invest in children at NO NET COST to you or your company!
The state of Arizona allows eligible businesses to allocate their tax liabilities and receive a dollar-for-dollar tax credit for up to 100% of their Arizona state tax liabilities. Simply redirect money that you would otherwise be paying in state income taxes and provide scholarships for Arizona K-12 students with verified finical needs. This is not a donation but a dollar-for-dollar tax credit. To participate, the company does not have to be based in Arizona, provided it pays Arizona tax liability. This is truly a Win-Win for you and Arizona students. Here, fill out the form to participate.
Corporate Tax Credit History & Facts: (A.R.S.§20-224.06 and § 43-1183)
In 2006 and then in 2008, the Arizona State Legislature passed into law “The Corporate Income Tax Credit” and then the Disabled/Displaced Corporate Income Tax Credit, allowing businesses with an Arizona tax liability to allocate up to 100% of their tax liability and make a contribution to a qualified School Tuition Organization such as STO4KIDZ, and receive a dollar-for-dollar Tax Credit, may also qualify to claim that amount on their federal taxes as a donation.
- C- Corporations
- S- Corporations and LLC’s filing as an S-Corporation
- Insurance Companies that pay premium taxes in Arizona
- The company does not have to be based in Arizona, provided it pays Arizona tax liability.
Two Corporate Tax Credit Programs:
- Low-Income Corporate Tax Credit Program (A.R.S. § 43-1183)
- Disabled/Displaced Corporate Tax Credit Program (A.R.S. § 43-1184)
Who Will Benefit From The Corporate Tax Credit:
- K-12 students with a demonstrated financial need
- Preschool–12 students with disabilities
- Kindergarten students with demonstrated financial need
- Foster students
- US Armed Forces dependent
- Students transferring from a public or charter school with demonstrated financial need
- Students previously received Corporate or Switcher scholarships with demonstrated financial need
How To Proceed:
1) Determine your business tax liability for the current year. You can allocate the total corporate tax liability amount.
2) Complete and submit your application by visiting STO4KIDZ.ORG or call for assistance at 480.823.8052.
1) STO4KIDZ will submit a Tax Credit Contribution Approval Request to the Arizona Department of Revenue (ADOR) on behalf of your company. (Applications must be submitted by an STO)
2) The request will be approved if the state cap has not yet been met. If the cap has been met, ADOR will create a waitlist based on the order in which the requests are received.
3) STO4KIDZ will notify you the same day ADOR informs us of the approval. Corporation has 20 calendar days to fund STO4KIDZ in order to keep the tax credit.
4) Once STO4KIDZ receives the contribution funds ADOR will be notified and STO4KIDZ will provide the company with a receipt to claim the tax credit.
5) When filing the company’s taxes, you will take the corporate income tax credit on the Standard 120 Form and file a 335 Form, listing the credit amount.
6) STO4KIDZ awards tuition scholarships to qualifying students.
- We are impacting our communities (Read more here)
- Immediate reduction in your corporate income taxes
- No out-of-pocket cost to you or your corporation.
- Can allocate up to 100% of your corporate state income tax liabilities.
- Receive a dollar-for-dollar tax credit.
- You may also qualify to claim your contribution on your federal taxes as a donation to STO4KIDZ, a 501c3 non-profit charitable organization.
- You benefit and aid K-12 students and schools in Arizona.
- Boost your community image as a corporate “good citizen”.
- Provide need-base financial aid to eligible K-12 Arizona private school students, and impact their future, today.
- STO4KIDZ in turn awards a minimum 90% of every dollar in tuition financial aid to eligible AZ private school students with verified financial needs within the same school calendar year.
(Please consult your tax advisor) http://www.azdor.gov/TaxCredits/CorporateTuitionTaxCredits.
- S-Corporations & LLCs that file as an S-Corp
- Insurance Companies that pay premium taxes in Arizona
C-Corporations can allocate up to 100% of their state income tax liabilities for the given tax year as long as it does not exceed the statewide cap for the year. Credit can be carried forward for up to 5 years.
S-Corporations, (as defined in section 1361 of the Internal Revenue Code) can either claim the credit against income taxes at the corporate level (income tax reported on an Arizona 120S corporate income tax return) or it may make an irrevocable election to pass the credit through to its individual shareholders. The S-Corp must make a minimum aggregate contribution of $5,000 within their taxable year in order to pass the credit through to its shareholders and may allocate up to 100% of their state income tax liability for the given tax year, receive a dollar-for-dollar tax credit; then pass the credit on to its shareholders proportionately. If a corporation allocates more than their tax liability, it can be carried forward for up to 5 years. The contribution must be made by the S-corp, not a shareholder, in order to be eligible for the corporate tax credit. Each individual shareholder may claim only a pro-rata share of the credit based on the individual’s ownership interest in the S-corp. (A.R.S. § 43-1089.04).
LLCs that are taxed as S-corporations for federal and state purposes are eligible to contribute for tax credit.
Insurance companies that pay Arizona state tax liability on their premium income can allocate up to 100% of their premium tax liabilities.
- A credit is allowed against the premium tax liability incurred by an insurer pursuant to section 20-224, 20-837, 20-1010, 20-1060, or 20-1097.07 for the amount of voluntary cash contributions made by the insurer during the tax year to a school tuition organization.
- The amount of the credit is the total amount of the insurer’s contributions for the tax year under subsection A of this section that is pre-approved by the department of revenue pursuant to section 43-1183, subsection D.
(Use tax form 335 to claim your credit)
No. Corporations can only claim their contribution in the tax year in which the contribution is made (plus, five years for carry forward purposes). The law allows your corporation to allocate your tax liability to a School Tuition Organization (STO) such as STO4KIDZ, designating a private school, not a specific student. However, if there are not enough eligible students at your designated school, the money will be awarded among eligible students attending other qualifying private schools in Arizona.
- K-12 Students with a demonstrated financial need
- Pre-K–12 Students with Disabilities
- Kindergarten Students with a demonstrated financial need
- US Armed Forces Dependents
- Foster Children
- Students Transferring from a Public or Charter School with a demonstrated financial need
- Previous Corporate or Switcher Scholarship Recipients with a demonstrated financial need
Arizona Corporate Tax Credit Forms and Instructions:
When filing your CORPORATE taxes, you can claim your tax credit by using the Arizona tax form 335 or 355i. These forms and more can be found at AZDOR.GOV
- Credit for Corporate Contributions to School Tuition Organizations (Form 335) / (Instructions)
- Credit for Business Contributions by an S Corporation to School Tuition Organizations-Individual (Form 335-I) / (Instructions)
FACT-SHEET (an overview of the Corporate Tuition Tax Credit program)
STO4KIDZ awards a minimum of ninety percent of every contribution in scholarships to eligible Arizona K-12 students twice a year, at the beginning of each semester.
We sincerely welcome and appreciate your support and participation in this most worthwhile program.
- Determine your business tax liability for the current year. You can allocate the total corporate tax liability amount. To participate, the company does not have to be based in Arizona, provided it pays Arizona tax liability.
Complete and submit your non-binding contribution pledge form Online , or call Miriam at 480.823.8052 for assistance.
STO4KIDZ will submit a Tax Credit Contribution Approval Request on behalf of your company to the Arizona Department of Revenue (ADOR).
The request will be approved if the state cap has not yet been met. If the cap has been met, ADOR will create a waitlist based on the order the requests are received.
- STO4KIDZ will notify you the same day ADOR inform us of the approval. Corporation has 20 calendar days to fund STO4KIDZ in order to keep the tax credit.
Once STO4KIDZ receives the contribution funds ADOR will be notified and STO4KIDZ will provide the company a receipt to claim the tax credit.
- When filing the company’s taxes, you will take the corporate income tax credit on the Standard 120 Form and file a 335 Form, listing the credit amount (335-S / Instruction or 335/ Instruction.)
STO4KIDZ awards tuition scholarships to qualifying students.
If you have questions, please contact Miriam Antolik at 480.823.8052 - 602.698.8855 OR Email us.
We sincerely welcome and appreciate your support and participation in this most worthwhile program at no out-of-pocket cost to you.
Inspire the next generation by investing in education.
Redirect your corporation’s tax liabilities to the students that will soon enter the workforce. Better education and training fuel innovation, investment, and economic diversification. High-quality education is essential to equipping our children with the tools they need to make a difference in our society and businesses. By investing in the education of Arizona’s youth, we protect the future of our economy.
BENEFITS TO YOUR EMPLOYEES!
Arizona's A.R.S. 43-401 allows individuals redirect state withholding taxes to STO4KIDZ via our Payroll Withholding Program if you are interested. Your employees can support tuition scholarships and without impacting their take-home pay.