There are two ways that your company can support our K – 12 Students
If you represent, work for or know if an Arizona-based corporation, you should know that corporations can donate to A Degree For Me and take advantage of either a full, dollar-for- dollar corporate tax credit or you can make a charitable contribution.
Corporate dollars are used exclusively to give Private School scholarships to needs-based students. “Needs-based” can be applied to a wide array of students and can include families and students that are economically-challenged or learning, emotionally or physically challenged. These issues impact not only the child but the family and extended family and A Degree For Me is committed to keeping our focus on helping this group. We are grateful for any donation your company can consider; it will make an everlasting impression.
How the Corporate Private School Tuition Tax Credit Works:
- An Arizona “C” Corporation(A.R.S. § 43-1183)can donate to a corporate A Degree For Me, a state-approved School Tuition Organization (STO) and designating a particular school.* There is an annual state-wide cap of $74,300,838 that opens on July 1, 2017 for the 2017-2018 school year that is allocated on a first-come-first-serve basis. “C” Corporations can donate up to their state income tax liability for the given tax year as long as it does not exceed the statewide cap for the year.
- An Arizona “S” Corporation(A.R.S. § 43-1089.04) can donate to a corporate A Degree For Me, an AZ STO designating a particular school.* There is an annual state-wide cap of $74,300,838 that opens on July 1, 2017 for the 2017-2018 school year that is allocated on a first-come-first-serve basis. “S” Corporations 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.
- Qualified families are encouraged by A Degree For Me and other STOs to apply for a financial aid scholarship.
- After reviewing all qualified scholarship applications A Degree For Me awards the scholarships and the money is sent directly to the schools.
- At tax time, the corporation claims the corporate tax credit for the amount contributed.
- The State of Arizona provides a credit against the corporation’s state taxes for 100% of your contribution.
*designating money to a particular student is prohibited from corporate donors Donating to K-12 private schools can mean dollar-for- dollar returns on your business’s state income or premium taxes. It’s a win-win situation for the families in need, the community and you, the taxpayer. Help inspire a new generation of thinkers, teachers, and leaders by providing them with the specialized education they deserve.
Prerequisites for Scholarship Awards Students must remain enrolled on a full-time basis to receive the scholarship. The following students are eligible for a corporate tax credit:
- For K-12 students and preschool students with disabilities.
- Student’s family income cannot exceed 185% of the income required to qualify a child for reduced price lunches.
- Scholarship cap: $5,300 for grades K-8; $6,600 for grades 9-12. The scholarship award amount for the 2017/18 school year cannot exceed the tuition cost for that school year.
- A student attended an Arizona public school as a full-time student for at least 90 days of the prior fiscal year or one full semester and then transferred from the public school to a private school.
- A student is enrolling in a private school kindergarten.
- A student is enrolling in a private preschool program for students with disabilities.
- A student is a dependent of a member of the armed forces of the United States who is stationed in Arizona pursuant to military orders.
- A student received a Corporate scholarship under one of the above criteria in a prior year and the student continued to attend a private school in subsequent years; OR
- Received an Original/Individual scholarship or a Switcher/Overflow Plus scholarship in a prior year and the child continued to attend a private school in subsequent years.
If you would like to make a donation as a C-Corporation or learn more about the Low Income Corporate Tax Credit please contact our office.