Archive for September, 2008

Arizona- In 1997, the Arizona legislature created an individual tax credit for contributions
to organizations that give students education scholarships redeemable at private-sector elementary and secondary schools. (Arizona Revised Statutes 43-1089)

- Individuals can receive a dollar-for-dollar credit for up to $500 against their state income tax, and married couples filing jointly are eligible for a credit of up to $625.

- During the first three years of activity, thousands of taxpayers donated
over $32 million to scholarship organizations that then distributed 19,000 scholarships to students. These scholarships were distributed by more than 30 scholarship organizations.

- Scholarships may be awarded on the basis of academic talent, financial need, or any number of criteria, but a survey of the scholarship organizations published by the Cato Institute found that more than 80 percent of the scholarships were awarded on the basis of financial need.

- From 1998 to 2004, the program generated $146 million, which financed over 98,000 scholarships.

- In 2004, more than $30M went to Arizona schools from parents and patrons who took advantage of the state’s education tax credits, marking a $3.2M increase from 2003.

- The Corporate Tuition Tax Credit Act, enacted by the Arizona Legislature on March 27, 2006 allows businesses to “offset their taxes” by making cash donations to private “school tuition organizations.” During fiscal year 2006-2007, the Department of Revenue has allocated $10 million in corporate tax credits.

- The current expanded tax credit program (A.R.S. 43-1089.01) allows individuals to receive a tax credit for donation to local schools. Single individuals can receive a credit of up to $200; married couples filing a joint return can receive a credit of up to $400

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