Corporate Tax Credits
If your company pays corporate taxes to the State of Arizona, the Arizona tax code allows your company to re-direct your tax payments to provide scholarships to low-income students who demonstrate academic promise.
Azura Scholarship Fund is recognized by the Arizona Department of Revenue (AZDOR) as a Certified School Tuition Organization that can receive donations for the Corporate Income Tax Credits.
Here is how it works:
Complete Azura’s Corporate Tax Credit Commitment form and return it to: STO@AzuraCares.org. You do this by downloading the PDF with the button below or by filling the form out online by clicking on the other button.
2. The Azura Scholarship Fund will complete the appropriate documentation and submit the application to the Arizona Department of Revenue (AZDOR). Within 20 days, the AZDOR will respond to Azura as to whether the request is within this fiscal year’s cap.
3. When Azura receives approval from the AZDOR, we will notify you right away. You will have 20 calendar days to make your payment to Azura.
4. Azura will send you a receipt with your AZDOR approval number that is used when your accountant files your corporate taxes.
Frequently Asked Questions:
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Any ‘S’ corporation or entity that files as an ‘S’ corporation, with a tax liability in Arizona.*
Any ‘C’ corporation with a tax liability in Arizona.
Any insurance company with a premium tax in Arizona.
*S-Corporations are eligible but are a little more complicated. According to the AZDOR, “The S-Corp must make a minimum aggregate contribution of $5,000 within their taxable year in order to pass the credit through to its shareholders. Any pro-rata shares that would be distributed to non-eligible partners (individual partners in a partnership) or estates or trusts (shareholders in an S-corp) are lost. An S-corp owned by a grantor trust is eligible to pass through the credit. The donations must be made by the S-corp, not a shareholder, in order to be eligible for the corporate tax credit. Each individual shareholder may claim only a pro rata share of the credit based on the individual’s ownership interest in the S-corp. The total of the credits allowed may not exceed the amount that would have been allowed to a sole owner of the business. If the S corporation elects to claim the STO credit at the corporate level, it may not pass through any remaining credit to its shareholders.”
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There are two types of corporate tax credits that Azura receives:
The “Low Income “ Tax Credit which is used to provide scholarships to Arizona kids from low income families that show academic promise.
The “Disabled/Displaced” Tax Credit which is used to help kids who have either an MET, an IEP, a 504 plan, or who have been in the Arizona foster care system.
Students who fit in these categories can apply to the Azura Scholarship Fund for financial aid.
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Up to 100% of your organization’s tax liability can be re-directed to the Azura Scholarship Fund. However, the credits must be pre-approved by the Arizona Department of Revenue to ensure that the amount falls within the annual limits of the program. Please see the instructions at the top of this page to see how to submit a Tax Commitment form to Azura to begin this process.
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If you inadvertently overpay your anticipated tax liability, you will not lose that money. Your organization’s tax credits can be carried forward for up to five consecutive taxable years as a credit against subsequent years' income tax liability
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We recommed that you talk to a professional tax advisor to talk about your unique tax situation.
If your question is more about the mechanics or logistics of making the contributions or website problems, you can contact us by email at: STO@AzuraCares.org or by phone at (480) 832-2108.
The Arizona Department of Revenue’s helpline is: (602) 255-3381 or (800) 352-4090
The AZDOR's website that has specific information about the Corporate Tax Credits can be found here: https://azdor.gov/tax-credits/credits-contributions-certified-school-tuition-organizations