Corporate tax credit scholarship donations hit cap in record time

AZ-Tax-creditThe Arizona Federation for Children, the state’s voice for educational choice, is pleased to announce that this morning the Corporate Tuition Tax Credit program has hit the 2015 fiscal year cap of $42.9 million. The Arizona Department of Revenue reported the program donations reached its cap just 10 weeks after the donation period opened July 1. The donations fund the state’s Scholarship Tuition Organizations (STOs).

“Reaching the $42.9 million cap in less than two and half months demonstrates the strong support and popularity of the Corporation Tuition Tax Credit program,” said Kim Martinez communications associate for the Arizona Federation for Children. “Today, nearly 12,000 low and middle-income students rely on this program to attend a quality school of their parents’ choice.”

STO’s provide K-12 scholarships to Arizona children like Nydia Salazar. Nydia is a junior at Saint Mary’s High School in Phoenix. Nydia’s mother Maria Salazar, a single parent who immigrated to the United States, can only afford the tuition to St. Mary’s because of Arizona’s Tax Credit Program.

“This scholarship program has changed my daughter’s life,” said Maria Salazar. “Nydia’s scholarship allows her to attend a school with a rigorous curriculum that fits exactly what she needs. I brought her here from Peru to have a better future and the generous donations to these scholarships have helped me give her that.”

“I love my school! I work hard every day in my classes for myself, for my mother, and because I want to show how much I appreciate the opportunity to go to a great school and get a great education,” added Nydia, 16.

This school year is the third year Nydia has been awarded a Corporate Tax Credit funded scholarship to attend St. Mary’s High School.
The Corporate Tuition Tax Credit program, enacted in 2006, allows corporations the option of a dollar-for-dollar tax credit in exchange for donating directly to a certified STO. The scholarships go to students who are from low and middle-income families and would not likely be able afford private school tuition without this assistance.

Arizona corporations wanting to donate are advised to now direct their funds to the Lexie’s Law program. That program helps children in foster care and special needs children, is still able to receive more than $2 million in donations.

4 Comments on "Corporate tax credit scholarship donations hit cap in record time"

  1. American business – just can’t wait to put money into program to benefit the people – that the government gets involved just grinds those dollars down – with a tax credit everyone just jumped head long into making this a successful program in ‘no time’ – cha-ching 42.9 million and it could have been 5 times that amount easy! Thanks guys!!!!!

  2. BTW – this is the first I’ve heard of this or these programs – I’ll bet I’m not an exception to the rule

  3. You’ve just got to love choice in education, after seeing what the political hacks have done to public school education.

    If public enrollment drops, so must funding.

  4. they close the school to cut costs it pops up open in another ‘government incarnation’ is just a short while – example DUFFY ELEMENTARY – its about three or four different programs now and they built a new school right next to the one they closed! How is that saving anything and where is the money coming from to operate these buildings? Technocrats on the loose!

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