Arizona Corporate Tax Credit
Your company can give a student the lifelong gift of a top-notch education!
“PCDS is the height of education in the Valley, and we are very proud to help contribute to the education of its students. Donating is easy; caring for children and growing young minds takes real heart. PCDS’s amazing team accomplishes this every day.” – Brown & Brown Insurance
Your company can fund scholarships for students who need them most at NO out-of-pocket cost to your corporation! By making a corporate tax credit contribution, companies can redirect the taxes they would otherwise pay to the state to fund scholarships for the most deserving and highest-need students to attend PCDS.
Did You Know?
- Nearly 1 in 4 students at PCDS receives a need-based financial aid scholarship.
- Each year, PCDS provides over 150 scholarships, thanks to the support of individual and corporate tax credit contributions.
- PCDS is committed to supporting each scholarship student’s entire PCDS career - whether they start in Kindergarten or 9th grade.
How Can You Help?
- “C” and “S” Corporations with an AZ income tax liability can redirect taxes owed to receive a 100% tax credit.
- Each dollar redirected helps fund need-based scholarships for PCDS students.
- There is no maximum contribution amount - just a minimum of $5,000 per company.
- Contributions are tax credits, which means no out-of-pocket cost to your company, but rather a dollar-for-dollar credit on AZ income tax! Your company is simply redirecting what is already owed to the state.
FREQUENTLY ASKED QUESTIONS
Q: How does the corporate tax credit work?
A: PCDS is a 501(c)(3) charitable organization and belongs to four different School Tuition Organizations (STOs), which raise money on behalf of PCDS and other member schools.
Companies can redirect their taxes to one STO (or more than one), which distributes funds for scholarships for need-based students to attend PCDS and other private schools. The Corporate Tax Credit program is not about financial donations. In fact, making a contribution to an STO costs a corporation nothing; it is a virtually free opportunity for a company to redirect its tax dollars to students instead of paying them to the state.
Q: Does my company qualify?
A: Currently, “C” and “S” Corporations are eligible to redirect their taxes to STOs, which then allocate scholarships to our students. Qualified companies must be “C” and “S” corporations that pay taxes in Arizona. Please consult with your tax advisor when filing state taxes.
Q: How does my company benefit from making a contribution?
A: First, you will know that your company is giving a lifelong gift of education by funding need-based scholarships that open doors that might never have been opened. In addition, PCDS works with each corporation to best meet its needs. Some corporations enjoy being named in promotional materials while other corporations wish to remain anonymous; we honor all contributions and contributors, public and anonymous.
Q: What’s the process to contribute?
Step 2: STO/Katie Charles will then complete the AZ Dept. of Revenue (ADOR) approval request form.
Step 3: ADOR approves or denies request within 20 days.
Step 4: STO/Katie Charles must receive corporation contribution within 20 days of approval.
Step 5: CLAIM THE TAX CREDIT!
Q: Is there a deadline for submitting a Corporate Tax Credit?
A: While the deadline for submission for approval from the AZ Dept. of Revenue starts on July 1, 2017, the state will continue to approve corporate contributions until the cap is met. Currently, the $74.3M cap has not been met (over $5M is still available) so ADOR is continuing to accept applications.
The state of AZ sets a cap every year for all corporate tax credit contributions statewide. Last year, the cap of $61M was met less than five minutes into the fiscal year! We are anticipating that this year’s cap will be met even more quickly this year, so we encourage companies to make their contributions as soon as possible. The current fiscal year began on July 1, 2017 and ends on June 30, 2018.
Q: Is there a limit to how much my company can contribute?
A: There is no contribution limit per corporation! However, there is a minimum contribution of $5,000 for “S” Corporations, and a statewide cap of $74.3 million for FY 2017.
On behalf of PCDS, faculty, staff, and students, THANK YOU for considering this
no-cost opportunity to change the life of a PCDS student!
- Kristie Berg, Director of Financial Aid
School Tuition Organizations (STOs) offering these scholarships:
- Arizona Independent Schools Scholarship Foundation (AISSF)
- Corporate Tax Foundation (CTF)
- Independent Schools Corporate Tax Foundation (ISCTF)
- Arizona Leadership Foundation (ALF)
- Arizona Tuition Connection (ATC)
- Arizona Scholarship Foundation (ASF)
- Arizona Private Education Scholarship Fund, Inc. (APESF)
- Institute for Better Education (IBE)
- Arizona School Choice Trust Foundation (ASCTF)
- Foundation for Corporate Tax Credit (FCTC)