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About the AZ Private Education Tax Credit Program

About the AZ Private Education Tax Credit Program 2018-05-03T21:05:55+00:00

The Corporate Tuition Tax Credit

The State of Arizona was the first state in the nation to institute the Private School Tuition Tax Credit program. As of 1998, individuals have been able to redirect their state tax liability to qualified School Tuition Organizations (STO’s) such as Catholic Education Arizona (CEA) for the purpose of supporting tuition costs at private schools, which includes our Diocesan Catholic schools. In 2006, Corporations became eligible to re-direct their AZ state tax liability to private schools. This is an historic opportunity. Never, before this law was passed, has there been a mechanism in place allowing individuals and corporations to re-direct their state tax liability to private schools, enabling “needs based” children to attend school in a stable and advanced learning environment; one that best serves their needs.

The Corporate Tuition Tax Credit allows C-Corporations, S-Corporations, Insurance companies that collect premiums and LLC’s who file their state taxes as a C-Corp or an S-Corp to redirect 100% of their state tax liability to qualified Student Tuition Organizations serving private schools, such as Catholic Education Arizona (CEA). This program is a dollar for dollar credit against taxes owed the state of Arizona. These funds are dedicated exclusively, to the support of tuition costs for low income or “needs based” students.

Participation in the Corporate Tuition Tax Credit program, is quick and easy. Simply complete a Catholic Education Arizona (CEA) tax credit commitment form, and e-mail it to CEA. Corporations can designate a specific school or up to 5 schools to receive their state tax credit funds. Or, the corporation can re-direct their state tax liability to the “general fund”, which supports all of our schools; predominately, those in greatest need. These options are included on the commitment form.

Each year, the State of Arizona limits the total amount of corporate state tax funding that can be used for distribution to private schools. The annual statewide cap for this year is $74,270,838.

Corporate tax credit applications are accepted by ADOR until the $74,270,838 tax credit maximum is met. CEA notifies each corporation when their tax credit has been accepted; usually within 5 days of submitting the commitment form. Upon confirmation by ADOR, the tax credit amount is due within 20 days of the date of the approval. The funds are sent to CEA and a receipt is provided the corporate contributor to submit to ADOR as proof of payment.

Download Corporate Commitment Form

Summary

  • The corporate tax credit program funds underprivileged children in our state, allowing them to attend high performing K-12 private (Catholic) schools. All faiths and all cultures are welcome and do attend our schools.
  • Catholic Education Arizona is the oldest and largest STO in the State of Arizona. Only 17 states have this type of mandated, educational funding mechanism in place for private schools. CEA makes it possible for approximately 7,000 needs based children each year, to attend Catholic schools in the Diocese of Phoenix and begin the climb out of poverty.
  • With NO out-of-pocket costs, corporations can re-direct up to 100% of their Arizona state tax liability to a qualified STO such as Catholic Education Arizona on behalf of any of our 38 Catholic schools. The tax credit is a dollar-for-dollar investment in a responsive and advanced education for the children of Arizona.
  • The Tax Credit is a legislated program and highly regulated within the State of Arizona. With very low administrative costs, CEA can assure our contributors that all designated funds are being used wisely and hard at work, fostering a love of learning, and nurturing character in an academic and challenging environment, while building a dedicated workforce for tomorrow. The educational results at our schools are astonishing; 99% high school graduation rate; and 97% continuing on to post-secondary educational opportunities or the military.
  • On behalf of all our schools and the students we serve, Thank you . We are deeply grateful for your support.

On behalf of all our schools and the students we serve, Thank You! We are deeply grateful for your support.