Applicant Application

General Information

Arizona’s Corporate Tax Credits for Private Schools


Corporate Low-Income Cap

$123,042,188 (Fiscal Year 2020-2021) Still $8,437,042 left as of 4/6/2021

Displaced/Disabled Cap

$5,000,000 (Fiscal Year 2020-2021)  Closed

History of the Corporate Tax Credit
In 2006 and then in 2008, the Arizona State Legislature passed into law the Corporate Income Tax Credit and then the Displaced/Disabled Corporate Income Tax Credit, which allows a corporation to make a contribution to a qualified STO (School Tuition Organization) and receive a dollar for dollar tax credit up to the total amount of the tax liability. There is no minimum amount a corporation can re-direct, but the law was capped at $10 million for the fiscal year 2006-2007 with an increase of 20% each year for the Corporate credit and capped at $5,000,000 for the Displaced/Disabled credit with no inflator.

Through 2017, since the inception of the program (from DOR reports) over $292 million has been donated and nearly 21,000 children have benefited in Fiscal Year 2017 from those donations.  

Each STO is required to use no less than 90% of the corporate contributions to students whose family income does not exceed 185% of the income limit to qualify for a free or reduced lunch program. (See additional chart for specific income levels.)  

Scholarships may not exceed $5,700 for grades K-8 and $7,000 for grades 9-12 for school year 2021-2022

Questions Your Corporation May Have:

Who can contribute to this tax credit?


How does a corporation enroll in this program?

Who will benefit from the donation?

Your corporation benefits too!

How much can a corporation give?  


Corporate Donation Procedures
First, determine:




A Corporate Low-Income Scholarship Recipient must...


have a family income which does not exceed 185% of the income required to qualify a child for reduced price lunches


AND must meet ONE of the following:


• Student attended an Arizona public school as a full- time student for at least 90 days of the prior fiscal year or one full semester and then transferred from the public school to a private school; OR

• Is enrolling or currently enrolled in a private school kindergarten; OR

• Is enrolling or currently enrolled in a private preschool program for students with disabilities (preschool student must have an MET or IEP from an Arizona public school; a 504 does not meet the requirement); OR

• Is a dependent of a member of the armed forces of the United States who is stationed in Arizona pursuant to military orders; OR

• Received a low-income corporate scholarship under one of the above criteria in a prior year and the child continued to attend a private school in subsequent years; OR

• Received an original individual scholarship or a switcher individual scholarship in a prior year and the child continued to attend a private school in subsequent years.



A Disabled/Displaced Corporate Scholarship Recipient must…        


meet ONE of the following prerequisites:


• Student has a MET or IEP from an Arizona public school (for preschool and K-12); OR

• Has a 504 plan from an Arizona public school (for K-12 only); OR

• Was placed at one time in the Arizona foster care system (for K-12 only and to be verified by the

  Arizona Department of Economic Security).



A Qualified School means…


a preschool that offers services to students with disabilities, nongovernmental primary or secondary school that is located in Arizona and that does not discriminate based on race, color, disability, familial status or national origin. All teaching staff and personnel that have unsupervised contact with students are required to be fingerprinted. Qualified school does not include a charter school or any program operated by a charter school. This means that a private school program which operates in the same facilities as the charter school operates and a private school program that is administered by the same staff as employed by a charter school is not eligible for private school tuition organization scholarships.


If you would like to print and mail a corporate contribution form choose this link: (please complete the form and fax (1-888-256-1130) or email it to

Corporate Printable Application


If you would like to complete a corporate contribution form online choose this link:


Corporate Online Application


Or if you would like a pdf version to of the Corporate brochure, choose this link:


Corporate Information Brochure