CORPORATIONS

A “C” corporation may receive a dollar for dollar tax credit for cash contributions to the Brophy Community foundation up to the amount of its Arizona state income tax liability.  An “S” corporation with a tax liability at the corporate level may also be eligible for the tax credit.
There is no contribution cap per corporation.  There is a statewide cap of $10 million for FY 2006- 2007.  Each year, for the five years of the program, the cap will increase by 20% until FY 2010 – 2011, when it will reach nearly $21 million.

The corporation must notify Brophy Community Foundation of its intent to contribute and the total amount before making the contribution.  Contributions may not be made directly to the school.

Brophy Community Foundation shall request pre-approval from the Arizona Department of Revenue (ADOR) of the intended corporate contribution amount via ADOR’s form 05-5529 and express mail.

The ADOR has 20 days to pre-approve or deny the request.  If approved, Brophy Community Foundation must immediately notify the corporate.

If ADOR approves the request, the corporation must make the contribution within 10 days of receiving notice of the approval.

If the corporate contribution is not received by the Brophy Community Foundation within 10 days, the contribution I no longer eligible for the state tax credit.

Unused credit can be carried forward for five years.

The corporation may not designate the contribution for the benefit of any specific student.
Each corporate contributor is encouraged to consult with its own tax advisor regarding the tax benefits arising from any contribution.