$52 million in donations pour in to fund K12 scholarships for Arizona's low-income students
Donation cap for the Corporate Tuition Tax Credit program is reached just three days into the fiscal year
PHOENIX (JULY 7, 2015) — The Arizona Department of Revenue informed School Tuition Organizations this week that the Corporate Tuition Tax Credit program hit its highest ever donation cap of over $52 million in record time. The program, which has reached an all-time high in popularity among corporate taxpayers, provides private school scholarships to Arizona’s low-income students through the state’s School Tuition Organizations (STOs).
Arizona State Rep. Justin Olson, R-Mesa, sponsored legislation this past legislative session which now allows small business corporations (S-Corps) to donate into the program and receive the same dollar-for-dollar tax credit as large corporations receive.
“We are so thankful to Rep. Olson for helping expand the donation pool to include small corporations, which played a part in the outpouring of donations received,” said Kim Martinez, communications associate for the Arizona Federation for Children. “The fact that we hit the cap so quickly means the program is secure and growing, that’s crucial for the families who are currently using the scholarships and future families who are searching for educational opportunities.”
“This tuition tax credit program is an outstanding opportunity for small business owners to directly focus their state income tax dollars toward improving the educational outcomes and future prosperity of thousands of Arizona’s K-12 students,” said Farrell Quinlan, Arizona state director of the 6,000-member strong National Federation of Independent Business in Arizona. “NFIB looks forward to continuing to spread the word about the existence of this laudable program to our members who file their taxes as S-Corps.”
This year is by far the quickest the donation cap has ever been hit showing an impressive upward trend in funding for the scholarship program. Last year the donations capped out at just under $43 million within weeks of the fiscal year starting. This year it only took three business days to hit the donation cap.
Corporations wanting to donate to a tax credit scholarship program can still donate to Lexi’s Law which helps disabled and displaced students attend specialized private schools. The deadline to donate to Lexi’s Law is June 30, 2016. Click here to visit the Arizona Department of Revenue’s Corporate Tax Credit page for disabled and displaced students.
The Arizona Federation for Children is a state affiliate of the American Federation for Children, the nation’s voice for educational choice.