The Tax Credit

The Arizona School Tax Credit

What it is, How it Works, Benefits

Arizona law provides tax credits against state income tax obligations to any Arizona taxpayer for payments made to a qualified School Tuition Organization (STO). Detailed information is available for both INDIVIDUALS and CORPORATIONS.

The Arizona Episcopal Schools Foundation is a qualified School Tuition Organization and a non-profit Arizona corporation, which is exempt under Section 501(c)(3) of the Internal Revenue Code.

The law states 90% of the STO’s funds go directly to qualified students attending member schools. The Foundation gives 90-94% of its funds to students who qualify for the various funding programs. More information is available on the Scholarships/Grants page.

Annual maximum credits are determined by the Arizona Department of Revenue (ADOR). Limits can be found on the Maximum Tax Credits page or on the Arizona Department of Revenue website.

The Foundation does not accept funds designated for a particular child though you can designate your contribution to support a particular AESF participating school or school(s).

The Foundation qualifies for employer matching funds programs. Please double your contribution and check with your employer!

The information presented here is not intended to provide tax or legal advice. Please consult your tax adviser or the Arizona State Department of Revenue for questions about individual issues. For more information visit the Arizona Department of Revenue web site.

Facts About the Tax Credit

What: The Arizona State Tax Credit for contributions to Student Tuition Organizations. AESF (Tax I.D. #86-0973130) is a qualifying Arizona School Tuition Organization (STO) and is on the certified STO list on the Arizona Department of Revenue website.

Who: All Arizona taxpayers can participate

Why: To create educational opportunity through scholarships for students to attend the Foundation’s schools.

When: Contributions can be accepted through April 15th for credit in the previous tax year. A contribution must be postmarked by April 15th or received online by midnight on April 15th to be eligible for credit in the previous calendar year. Contributions received between December 31st and April 15th must indicate which tax year it is to be recorded towards. Contributions received AFTER April 15th will be recorded towards the current tax year.

IRS form 323 and form 348 must be completed and submitted with your Arizona Tax Return to claim the available credits. Complete information is available on the Arizona Department of Revenue website www.azdor.gov under Tax Credits.

How: A contribution to the Arizona Episcopal Schools Foundation entitles you to a dollar-for-dollar credit against your Arizona state income tax obligation. Contributions can be mailed to the Arizona Episcopal Schools Foundation OR made online at www.az-esf.org.

Cost: ZERO Dollars! Your Arizona tax obligation is the funding source. YOU have the POWER to determine how your TAX DOLLARS are utilized!

Information is not intended to provide tax or legal advice. Please consult the Arizona Department of Revenue, the IRS, or your tax adviser for questions about individual issues.