Low Income Corporate School Tuition Organization Tax Credit

Program Information

  • STC
  • Program Type: Scholarship Tax Credit Program, Means Tested, Corporate
  • Eligibility: Means tested

Student Participation

  • To be eligible:
    • Family income cannot exceed 185% of the amount required to qualify for the free or reduced-price lunch program ($46,435 for family of four in 2018)
    • Student must have 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. Those students who transfer to a qualified school a‹er the first full semester are eligible to receive a scholarship that same academic year; or
    • Student must be enrolling or currently enrolled in a private school kindergarten; or
    • Student must be enrolling or currently enrolled in a private preschool program for students with disabilities (preschool students must have an MET or IEP from an Arizona public school; a 504 plan does not meet the requirement); or
    • Student must be a dependent of a member of the U.S. armed forces who is stationed in Arizona; or
    • Student received an individual scholarship in a prior year and continued to attend a private school in subsequent years
  • Must not discriminate on the basis of race, color, handicap, familial status or national origin, and must satisfy the requirements prescribed by federal law for private schools
  • Require teachers to be fingerprinted
  • Use at least 90% of contributions for scholarships
  • Make scholarships available for more than one school
  • Must allow the state to verify that scholarships are awarded to students attending a qualified school
  • Report annually to the state:
    • Data on accepted contributions, grants awarded, dollar amount of scholarships granted to students who qualify for the free or reduced-price lunch program, dollar amount of scholarships granted to those students whose household income falls between 185% and 342% of the federal poverty level ($46,435 and $85,842 for family of four in 2018), amount of money being held for identified student scholarships in future years, list of participating schools with the number and dollar amount of scholarship awards received, the salary of the STO’s top three officials for the fiscal year and proof of independent review of financial statements by a certified public accountant

Data Update

Scholarships Awarded
Schools Participating
STOs Operating
2016 Donations


Scholarship Cap
- $5,300 (grades K-8)
- $6,600 (grades 9-12)
- Caps increase by $100 each year
Tax Credit Value
- 100 percent of donation
Donor Tax Credit Cap
- None
Statewide Cap
- $74.29 million (FY 2018)
- 20 percent annual increase each year