Private School Funding

ARIZONA’S PRIVATE SCHOOL TAX CREDIT PROGRAMS

What are they? 
Arizona’s K-12 private school tax credit programs let individuals and corporations donate to qualified school tuition organizations (STOs), which then provide scholarships to help families pay for private school tuition. Donors can receive a dollar-for-dollar tax credit on their Arizona state taxes. Donations are made to a School Tuition Organization (STO).  Students/Families then apply for scholarships through the STO. 

• Watch this informative Tax Credit Overview Video (2 min)  

Eligibility: 

There are 4 different types of Tax Credit Programs. The first program below is open to ALL Arizona students who are enrolled in (or will be enrolling in) an Arizona private school. 

1. The Original Individual Program – open to ALL Arizona students enrolled in or enrolling in private school.  

For programs (#2-4), students need to meet eligibility requirements. These requirements vary depending on the program.  Eligibility requirements may include:  

• Attended a public school for 90 days in year prior to transferring to private school. 
• Student is a dependent of member of U.S. Armed Forces stationed in AZ 
• Student was homeschooled immediately  
• Student moved to Arizona from another state 
• Low-income (Family of 4 household income less than $110,000) 
• Student with an Individualized Education Program (IEP) from Public School 
• Student in the AZ foster care system. 

2. PLUS/Switcher – designed for students who are switching from public to private school.

3. Corporate Low-Income – program is primarily for children whose household income is below 185% of the federal poverty level (Family of 4 = $59,500)  However, some STO’s give to families whose income falls between 185% and 342% above the federal poverty level.  (Family of 4 = $59,500 to $110,000)

4. Corporate Disabled/Displaced – designed for two groups of students with greater educational challenges (students with disabilities or students in the foster care system).

Funding Amount:   
Scholarship amounts can be as much as the full cost of private school tuition.  STOs determine scholarship amounts based on financial need and the donations they receive each year.  

What Can Private School Tax Credit Money Pay For?
Private school tuition only. Any other fees related to school or school activities are ineligible. Students cannot receive ESA funding AND also participate in the private school tax credit programs (see ESA info above). 

How Does It Work? 

1.  Donations & Recommendations

• • Anyone in Arizona (friends, relatives, etc.) can donate to a School Tuition Organization (STO) and recommend your child for a scholarship. 
  • Donation limits are $1,535/year for individuals, $3,062/year for married couples. 

2. Tax Savings for Donors 

• • Donors get a dollar-for-dollar tax credit on their Arizona state income taxes. If someone donates $500, they owe $500 less in state taxes or will get that $500 back on their tax refund. 

3. Applying 

• • Parents apply for scholarships through an STO. Each STO has its own application process and will help you choose the right options. 

If interested… contact an STO to guide you through the process. Ask your private school for a list of certified STO’s or check the list of Certified STO’s in Arizona.  Here are some of MySchoolsTucson’s  recommended STO’s: 

• Institute for Better Education (IBE)  
• Arizona Leadership Foundation 
• AAA Scholarship Fund 
• Catholic Tuition Support Organization