Who Can Donate?
As a corporation, you have the opportunity to make a difference without affecting your bottom line!
You have the choice to donate what you would otherwise pay to the state of Arizona in taxes. Why is this important? Your donation will help children from low to modest income homes, children with disabilities (physical, learning, or emotional), and children who have been or are currently in the Arizona foster care system.
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C Corporations
C Corporations may donate up to their state income tax liability for the given tax year, as long as it does not exceed the entire statewide cap for the year. If a corporation donates more than their tax liability, it can be carried forward for up to five years. A.R.S. § 43-1183
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S Corporations
S Corporations or LLCs that file as an S Corporation may donate up to their state income tax liability for the given tax year, with a minimum donation of $5,000, and then pass the tax credit on to its shareholders proportionately. If a corporation donates more than their tax liability, it can be carried forward for up to five years. A.R.S. § 43- 1089.04
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Insurance Companies
Insurance Companies which pay premium tax may donate up to their state tax liability for the given tax year, as long as it does not exceed the entire statewide cap for the year. If a corporation donates more than their tax liability, it can be carried forward for up to five years. A.R.S. § 43-1183
What is the statewide cap?
Unlike the Private School tax credits for Individual donors, Arizona’s tax credits for Corporate donors do not have a maximum amount for which each donor can receive a credit. Instead, there is an annual cap on the total amount all Corporate donors combined can donate.
The cap is $135 Million for the Low-Income Corporate Tax Credit Scholarship Program.
The cap is $6 Million for the Disabled/Displaced Tax Credit Scholarship Program.
