What is the Private School Tuition Organization Contributions Credit?
You can claim a credit if you made contributions to an Arizona private school tuition organization that provides scholarships or grants to qualified schools.
The credit is equal to the amount contributed, up to a certain limit (which we'll calculate for you).
If the allowable tax credit is more than your tax or if you have no tax, you may carry the unused credit forward for up to the next 5 years.
A school tuition organization is an organization that meets all of the following:
- The organization is tax-exempt.
- The organization allocates at least 90% of its annual revenue to scholarships or grants.
- The organization makes its scholarships or grants available to students of more than one qualified school.
A qualified school is a nongovernmental primary or secondary school located in Arizona, or a preschool for disabled students located in Arizona. The school cannot discriminate on the basis of race, color, handicap, familial status, or national origin. The primary school must begin with kindergarten and the secondary school must end with grade 12.
In the case of a preschool for disabled students, a
handicapped student is a student who has any of the following conditions:
- Hearing impairment
- Visual impairment
- Developmental delay
- Preschool severe delay
- Preschool speech or language delay
To determine if your contributions qualify for this credit, you should ask the organization if it meets all of the requirements. Your donation to the school tuition organization will not qualify for the credit if you designate the donation for the direct benefit of your dependent.
This credit is available only to individuals. Corporations may not claim this credit. A partnership may not pass the credit through to its partners. An S corporation may not pass the credit through to its shareholders.