Individual School Tuition Organization Tax Credit

Program Information

  • STC
  • Program Type: Scholarship Tax Credit Program, Universal, Individual

Student Participation

  • For preschool, student must be enrolling or currently enrolled in a private preschool program for students with disabilities and have an IEP or multidisciplinary evaluation team (MET) report from an Arizona public school
  • Additional requirements may be determined by School Tuition Organizations (STO)
  • 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
  • Cannot exchange recommendations of student beneficiaries with other donors
  • 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 guidelines ($46,435 to $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
    • Proof of independent review of financial statements by a certified public accountant

Data Update

Scholarship Awarded
52,554
Schools Participating
330
STOs Operating
64
2016 Donations
$100,959,059

Financial

Scholarship Cap
- Tuition Only
Tax Credit Value
- 100 percent of donation
Donor Tax Credit Cap
- $1,107 single ($555 for this program + $552 Switcher program) (2018)
- $2,113 married couple ($1,110 for this program + $1,103 Switcher program) (2018)
Statewide Cap
- None