Arizona’s Tax Credit Programs allow parents to actively promote the tax credit program for the tuition benefit of their students.
How The Program Can Work for You
- Once your student’s application has been approved by AZTO’s board for participation in the tax credit programs, you are ready to spread the word.
- You can promote the tax credit program to your family and friends, anyone who pays Arizona income taxes. Many families will send a personal letter with an AZTO Donation Form to family and friends asking potential donors to participate in the credit. Others will use social media to encourage their Arizona network to take part. You can like AZTO on Facebook. Or you can share the link of AZTO’s Vimeo Whiteboard Animation Video explaining the program in an email, text, or Facebook.
- An Arizona taxpayer may make a recommended donation to AZTO suggesting your student for a tuition tax credit award. Donations are accepted online or by mail with a current year Donation Form.
- Once AZTO’s board approves the recommended donation for your student, the award will be issued to the participating school at the next award cycle.
- All donations made to AZTO are confidential.
- Please understand all program eligibility and restrictions.
The statutes governing Arizona’s tax credit programs for individuals allow donor recommendations. AZTO welcomes donor recommendations, as we feel those in the community offer an added layer of input regarding the need for tuition assistance. Although the program regulations allow donor recommendations, there are rules governing this giving scenario.
- As described by the State of Arizona, “A school tuition organization cannot award, restrict or reserve scholarships solely on the basis of donor recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.”
- AZTO requires an annual application for each student. The application is reviewed and approved by AZTO’s board based on a number of factors (character, merit, community involvement, extracurricular activities, academics, leadership, financial need, family hardship, etc). Approval of a recommended tuition awards is not solely based on the donor’s recommendation.
- A parent/guardian may NOT make a recommended donation for their own student. In divorce situations, this restriction includes the non-custodial parent even if the child is not being claimed as a dependent.
- Swapping donations are strictly prohibited.
- Restrictions apply to ESA recipients, high income households, early starting kindergarten students, non-PLUS eligible students, and others. See Eligibility and Restrictions.
- All recommended donations are at the complete and sole discretion of AZTO as defined by Arizona regulation.