Arizona’s Corporate Tax Credits let eligible companies redirect a portion of their state tax liability to certified School Tuition Organizations (STOs). In return, businesses receive a dollar‑for‑dollar credit on their Arizona income tax, while students at Catholic schools receive life‑changing tuition scholarships. It’s a rare policy that delivers a clear win for corporate finance teams and a transformational win for local families.

Two programs fund most corporate gifts:

  • Low‑Income Corporate Tax Credit (claimed on Arizona Form 335)
  • Disabled/Displaced Students Corporate Tax Credit (claimed on Arizona Form 341)

Both require pre‑approval from the Arizona Department of Revenue (ADOR) and are managed under annual program caps, and are authorized under Arizona Revised Statutes §43‑1183 and §43‑1184, including the §43‑1184 corporate credit for disabled/displaced students.

Quick note on eligibility: C‑corporations, S‑corporations (at the entity level or by electing to pass credits through to shareholders), some tax‑exempt organizations with UBTI, insurance companies with premium tax, and corporate partners in partnerships may qualify. Always consult your tax professional for your situation.

Why This Is a Double Win

1) Bottom‑Line Benefits for Business

  • Dollar‑for‑dollar credits against Arizona corporate income tax (nonrefundable; carryforward generally available for up to five years)
  • Budget predictability via state‑approved pre‑authorization before funding
  • ESG/CSR alignment that genuinely resonates with employees and customers
  • Brand lift through visible, values‑aligned community investment

2) Mission Impact for Catholic Schools and Families

  • Scholarships for low‑income students and students with disabilities or who are displaced
  • Stability for schools: scholarship dollars help sustain programs, retain great teachers, and support campus improvements
  • Community outcomes: improved access to faith‑filled, academically rigorous education across Arizona

How the Process Works (Step‑by‑Step)

  1. Plan your amount and timing. Determine how much of your Arizona tax liability you want to redirect.
  2. Start pre‑approval. Coordinate with a certified STO—like Catholic Education Arizona—to submit your ADOR pre‑approval request.
  3. Fund within the window. Once approved, your business typically has 20 days to make the contribution.
  4. Receive documentation. Keep the STO receipt and pre‑approval letter for your Arizona return.
  5. Claim the credit. File the appropriate Arizona form (Form 335 and/or Form 341) and track any carryforward.

Want help mapping the steps to your fiscal calendar? Visit our Corporate Giving page to get started.

What Businesses Like About It

  • Simple, repeatable process once your first contribution is set up
  • Clear reporting for finance and audit teams
  • Immediate community visibility: your dollars stay local and directly support students at Catholic schools

Curious how scholarships change lives? Explore our student stories and outcomes.

Ready to Create a Double Win?

Catholic Education Arizona can help your company time pre‑approval, fund quickly, and document your credits, while opening doors for students across our Catholic schools. Contact Catholic Education Arizona at 602-218-6542 or info@ceaz.org.