Understanding the Law

 

About A.R.S. 43-1183

Arizona Tax Code as Amended:

43-1089. Credit for voluntary contributions to school tuition organizations:

A. "For taxable years beginning from and after December 31, 1997, a credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions made by the taxpayer during the taxable year to a school tuition organization, but not to exceed $1000.00* in any taxable year."

 

*The 2017 limit for married filing joint return is $2,177. The single filers limit is $1,089

In 1998, Arizona amended its tax code to allow individuals and certain corporations to reallocate a portion of their Arizona income taxes to help children obtain a quality, private education. In other words, Arizona law provides a dollar-for-dollar tax credit for contributions made to School Tuition Organizations (STOs) that provide need-based scholarships to students attending private schools.

 

How the Arizona Private School Tax Credit Works

Upon contribution to an STO such as the Jewish Tuition Organization, the State of Arizona will provide you with a dollar-for-dollar tax credit that reduces your state income tax liability by the amount you contribute.

 

Learn more about Arizona's Private School Tax Credit (ARS 43-1089) and download a free Q&A brochure from the Arizona Department of Revenue website.

 

Scholarships paid for 2015-2016 by income level

JTO STO Original Scholarship Program

Original scholarships paid during FY 2015/16 to students with family income of 185% and below of poverty level:

Amount of original scholarships paid  = $524,281

Amount as a percentage of total original scholarships paid= 33%

Original scholarships paid during FY 2015/16 to students whose family income is 186% to 342% of poverty level:

Amount of original scholarships paid = $479,693

Amount as percentage of total original scholarships paid = 30%

Original scholarships paid during FY 2015/16 to students whose family income is at 343% and above of poverty level:

Amount of original scholarships paid = $588,824

Amount as percentage of total original scholarships paid =  37%

JTO STO Switcher Scholarship Program

Switcher scholarships paid during FY  2015/16 to students with family income of 185% and below of poverty level:

Amount of switcher scholarships paid  = $608,379

Amount as a percentage of total original scholarships paid= 53%

Switcher scholarships paid during FY 2015/16 to students whose family income is 186% to 342% of poverty level:

          Amount of switcher scholarships paid = $377,715

Amount as percentage of total original scholarships paid = 33%

Switcher scholarships paid during FY 2015/16 to students whose family income is at 343% and above of poverty level:

Amount of switcher scholarships paid = $169,845

Amount as percentage of total original scholarships paid = 14%

JTO STO Corporate Scholarship Program

Corporate scholarships paid during FY 2015/16 to students with family income of 185% and below of poverty level:

Amount of corporate scholarships paid  = $212,228

          Amount as a percentage of total original scholarships paid= 62%

Corporate scholarships paid during FY 2015/16 to students whose family income is 186% to 342% of poverty level:

          Amount of corporate scholarships paid = $132,634

Amount as percentage of total original scholarships paid = 38%

 

SCHOLARSHIPS PAID FOR 2014-2015 BY INCOME LEVEL

JTO STO Original Scholarship Program

Original scholarships paid during FY 2014/15 to students with family income of 185% and below of poverty level:

Amount of original scholarships paid  = $1,252,625

Amount as a percentage of total original scholarships paid= 77%

Original scholarships paid during FY 2014/15 to students whose family income is 186% to 342% of poverty level:

Amount of original scholarships paid = $293,842

Amount as percentage of total original scholarships paid = 18%

Original scholarships paid during FY 2014/15 to students whose family income is at 343% and above of poverty level:

Amount of original scholarships paid = $75,243

Amount as percentage of total original scholarships paid =  5%

JTO STO Switcher Scholarship Program

Switcher scholarships paid during FY  2014/15 to students with family income of 185% and below of poverty level:

Amount of switcher scholarships paid  = $910,649

Amount as a percentage of total original scholarships paid= 90%

Switcher scholarships paid during FY 2014/15 to students whose family income is 186% to 342% of poverty level:

          Amount of switcher scholarships paid = $89,141

Amount as percentage of total original scholarships paid = 9%

Switcher scholarships paid during FY 2014/15 to students whose family income is at 343% and above of poverty level:

Amount of switcher scholarships paid = $6,532

Amount as percentage of total original scholarships paid = 1%

JTO STO Corporate Scholarship Program

Corporate scholarships paid during FY 2014/15 to students with family income of 185% and below of poverty level:

Amount of corporate scholarships paid  = $36,550

          Amount as a percentage of total original scholarships paid= 100%