State Tax Credit Scholarships

  • The goal of the tuition tax credit program is to make private schooling available to everyone.There is no cap on how much a student can receive as a scholarship, but the amount that can be used is limited to the cost of tuition. The tax credit law specifies that scholarships may only be used for qualified K-12 private schools.
    Asking for donations
    All scholarship money awarded is funded by generous taxpayer donations. In return, these taxpayers are able to claim a tax credit for 100% of what they donated, up to the maximum allowed or their income tax liability, whichever is less. What is more, these donors are allowed to make student recommendations on their donation. It doesn't guarantee that the student they name will receive a scholarship, but it is considered as one of the factors used to make award decisions. Click here for a Sample Letter to request donations.
    Educate Arizona taxpayers about these state tax credits! By donating to a School Tuition Organization, you let the state know you support Christian Education!
    Claiming Your Credit
    Now that you've made your Tax Credit donation, you'll need to claim it on your Arizona tax returns. This 5 minute video gives you a quick overview about how to claim your Private School Tax Credit.
    Applying for Scholarships
    Listed below are the School Tuition Organizations (STOs) that provide financial assistance for those who choose to send their children to private schools. Please contact the individual STO for their specific requirements, applications and guidelines.
    There are three types of scholarships available:
    1. Individual-Original Tax Credit Scholarship
    Any student who is attending a qualified private school is eligible to apply for an Original Tax Credit Scholarship. In order to be considered, the student must simply be enrolled at the school and have a completed scholarship application.

    2. Individual-Overflow/PLUS Tax Credit Scholarship, Sometimes Referred to as Switcher
    Students who are eligible fall under these four categories:
    1. Switchers: A student who switched from a public to a qualified private school in the previous school year after having attended public school for at least 90 days (or one full semester) before switching enrollment to a private school.
    2. Kindergarten students entering a qualified private school.
    3. Military: Students who are the dependents of a member of the U.S. Armed Forces who is stationed in Arizona pursuant to military orders.
    4. Corporate/Overflow: A student who has previously received a scholarship from the corporate tax credit or Overflow/PLUS tax credit program, and has continued in a qualified private school ever since. 
    3. Corporate Tax Credit Scholarships
    Students are eligible for these scholarships when the student’s family income meets the low family income requirements AND has previously received either a switcher or an original scholarship award.  Corporate Scholarship Eligibility

School Tuition Organizations (STOs)