Thanks to A.R.S. 43-1183, corporations that pay corporate income tax can now redirect up to 100 percent of its tax liability to fund K-12 education scholarships for eligible, low-income children.
Who is eligible to contribute Corporate Tuition Tax Credits?
- Any insurance company in Arizona.
- Any ‘C’ corporation that has a tax liability within the state of Arizona.
- Any ‘S’ corporation that has a tax liability within the state of Arizona. Note: you may “pass through” your liability to individual shareholders or partners.
How does the process work?
- Reserve your tax credit By June 30
Fill out the Corporate Tax Credit Request from on our website. The CTO will submit this application to the state on your behalf.
The corporate income tax credit has a fiscal year cap, placed by the DOR. The approval process is first come first serve.
- Remitting your payment to the CTO:
Once the AZ DOR approves your request. Payments must be submitted within 20 days to receive the tax credit.
A company using the “general/standard” method of determining its estimated quarterly payments should net the remittance amount from its state tax liability, after the application of any other allowable credits.
