There are three Arizona tax credits that allow Arizona individual taxpayers and corporate taxpayers to make a donation, receive a dollar for dollar tax credit and help educate tomorrow’s leaders.

Private School Tax Credit
The Arizona legislature enacted a law in 1997 (effective 1998 tax year) allowing individual taxpayers an Arizona income tax credit up to $500 (single and head of household) or $1,000 (married filing joint) for donations to a private school tuition organization, such as the Brophy Community Foundation. At least 90% of the donations to the Brophy Community Foundation must be given to students for tuition aid. A student must apply directly to the Brophy Community Foundation for tuition aid. All awards are need based.

Public School Tax Credit
Taxpayers may also receive a tax credit up to $200 (single and head of household) or $400 (married filing joint) for donations to public schools. Donations to public schools are used for extracurricular activities. This means any school sponsored activity that requires enrolled students to pay a fee in order to participate. The Brophy Community Foundation recommends donating to the Wilson School District, 3025 E. Fillmore Street, Phoenix, Arizona 85008. Send your donation payable to and directly to the Wilson School District.

An individual taxpayer may take advantage of both the private school and public school tax credit in any given tax year. Therefore, a single taxpayer could receive $700 in TAX CREDITS annually and benefit education! Couples filing joint returns could receive $1,400 in TAX CREDITS.

Corporate Tax Credit
In 2006, the Arizona legislature passed a corporate tax credit that allows “C” Corporations and “S” Corporations (only if the “S” Corporation has a tax liability at the corporate level) to make donations to a school tuition organization, such as the Brophy Community Foundation, and receive a dollar for dollar tax credit. There is no contribution cap per corporation, but there is a statewide cap of $10 million for FY 2006-07. Each year, for the five years of the program, the cap will increase by 20%, until FY 2010-1011, when it will reach nearly $21 million.

For more information, call the Arizona Department of Revenue:
Phoenix 602-255-3381
Nationwide, toll-free 800-352-4090

Or visit relevant Arizona Department of Revenue websites:

Arizona Department of Revenue
www.revenue.state.az.us/index.htm

Arizona Department of Revenue Tax Credit Brochure
School Tax Credits Brochure

Arizona Revised Statutes
A.R.S. 43-1089 – Tax credit for contributions to private schools.
A.R.S. 43-1089.01 - Tax credit for contributions to public schools.
A.R.S. 43-1183 – Corporate tax credits for contributions to private


Arizona Tax Forms
301 - Individual Tax Credits & Instructions
323 - Credit for Contributions to Private School Tuition Organizations
323 Instructions