Tag Archives: arizona school choice trust

corporate tax credit

7 Steps To Taking The Corporate Tax Credit

With the deadline looming, did your company get the tax credit? Here are seven easy steps to taking the corporate tax credit.

Each year, companies that do business in Arizona are eligible to participate in the corporate tax credit program — it’s free to participate, as it’s simply a redirection of your state tax liability to a scholarship program. For doing so, your company can receive a dollar-for-dollar credit. This year’s deadline for credits for this year is looming; has your company taken advantage of the program yet?

The tax credit program has a statewide cap each year, and the fiscal year ends in June; so if your company plans to participate, time is of the essence.

Where does the money go?

Tax credit contributions given through Arizona School Choice Trust are used for scholarships for low-income students to attend private schools across Arizona. Your company can even designate the scholarships to certain schools or parts of town if there are places you do business. Scholarships can not be named for specific students. This program allows companies to invest back in their communities, improve education in Arizona, and do so at no cost.

Additional benefits

Your company can publicly announce your participation or remain anonymous. We have hosted many press conferences with check ceremonies promoting a company’s contribution.

These scholarships ensure children get a great education, are headed toward college, and dramatically improve outcomes for the future workforce.

Why ASCT?

Arizona School Choice Trust is the oldest and most experienced scholarship organization in Arizona. We take very seriously our dedication to helping families across the state whose children would not otherwise have the opportunity for a quality education. All of our families complete an extensive application process to ensure they demonstrate financial need. We allow parents to chose any private school in the state. Our scholarships are awarded on a first-come, first-serve basis. Each year we have thousands of applicants and, often, a long waiting list. Every corporate contribution goes a long way to awarding dozens of scholarships to students on our waiting list. We work closely with our corporate donors to share stories of the impact their donation has made, both with their internal leadership and publicly if they desire.

Here are the seven easy steps to participate in the corporate tax credit:

1.    Identify your company’s corporate tax liability.

2.    Determine how much you would like to donate versus pay to the state this fiscal year.  (Your company can donate the entire corporate tax liability amount.)

3.    Contact Arizona School Choice Trust, informing them of the amount you wish to donate. You can send a letter to ASCT’s office P.O. Box 1616, Glendale, AZ 85311; or contact us by email at ldrechman@asct.org. Include your company’s name, EIN #, amount you wish to donate and contact information.

4.    ASCT will file a one-page form with the Department of Revenue asking for approval for the donation/credit. We will send you a copy.

5.    The DOR will respond within 20 days on whether or not funds are available under the current fiscal year cap (for the 2010 fiscal year there is $20M available; 2011 is just over $22M).

6.    Within 10 days of DOR approval (DOR and ASCT will notify you), your company must send a check or wire to ASCT for the donation.

7.    When you file your company’s taxes, you will take the corporate income tax credit on the standard 120 form and file a 335 form as well listing the credit amount.

*Please consult your tax adviser for advice on filing and using your credit. This is only a guide; it does not constitute tax advice.

For more information, contact Elizabeth Dreckman at (480) 223-2769 or visit asct.org.

Arizona School Choice Trust

Arizona School Choice Trust, Tax Credit Gives Students Hope

The mission of Arizona School Choice Trust is to provide hope and opportunity to Arizona’s neediest children. We need your help to continue to provide educational options to these desperate families. Corporations can be a part of our amazing success stories by participating in Arizona’s Corporate Tax Credit Program. Corporations with an Arizona corporate income tax or insurance premium tax liability can redirect up to 100 percent of their tax liability to Arizona School Choice Trust and receive a dollar-for-dollar tax credit for their contribution. The process to enroll is very simple, and it costs nothing to participate — but it makes all the difference to families across Arizona.

One grateful scholarship recipient, Jorge, recently spoke at the Arizona capitol about his experience in the program.  He called the opportunities he has received “life transforming.” His mother Lydia added, “the education provided with generous tax credit contributions has allowed Jorge to reach his true potential.”

Another story of a life touched by School Choice is told by foster parent Carol. Anthony spent the first years of his life in poverty, even experiencing homelessness. Carol says, “Thank you to the many donors who have found it in their hearts to give children like Anthony an opportunity for a better life.”

Our success stories are the reason we are so dedicated to School Choice. We believe that every child deserves the chance to reach their potential. Arizona School Choice Trust scholarships make that possible.

Arizona School Choice Trust is leading the way with new and innovative outreach to the community. In addition to working closely with school choice leaders statewide, we were proud to participate in one of the largest school choice celebrations in the nation.

One highlight of School Choice Week 2012 was a Congressional Town Hall held on January 24th. It was a great opportunity for supporters, educators and children alike to hear directly from their representatives in Washington DC. Participating in the event were Congressman Trent Franks, Congressman Ben Quayle, Congressman David Schweikert and Congressman Jeff Flake. The Congressmen answered questions posed by moderator Jonathan Butcher, Goldwater Institute’s education director, and Lisa Graham Keegan, former Arizona Superintendent of Public Instruction. Attendees voiced strong support for expanded school choice options and encouraged their representatives to continue fighting on behalf of Arizona’s children.

To watch videos from this town hall, or to learn more about Arizona School Choice Trust, visit asct.com. Here, you can learn more here about how your corporation can participate in the growing school choice movement as well.

Education Crisis

A Solution To The Education Crisis: Arizona Paving The Way

You’ve read the dismal facts and figures: only 76.1 percent of Arizona children graduate from high school. There are 90,000 students in Arizona at schools that receive D-grades – enough children to fill a stadium. These facts and figures are not just heady factoids, they equate to a very real and urgent problem for employers – an incoming workforce that requires significant remediation or is totally unprepared for the job.

The solution to this education crisis is twofold, but very simple. And you can be a part of it.

First, information is critical. This year, Arizona parents and communities were empowered to evaluate their local schools through useful information – a grading system that makes it clear how the school is performing and what the outcomes for children will be. If your school is given a D grade, it’s probably time to look at other options. This brings us to the second part of the solution, one that business owners understand well: competition.

Competition in education is another name for school choice. As children (and families) are able to “walk” with their funding to better educational providers, the outcomes for those children – and the ones who remain – improve.  As schools lose “customers” to better performing schools, much like in any business, they must re-evaluate how they do business and change to better serve their clients – the kids.

Arizona public schools currently spend close to half of their state funding outside the classroom. Charter and private schools spend a majority of their funding per student on things that directly affect the classroom and students – curriculum, technology, teacher salaries. It’s clear walking into any non-traditional school that the focus is educating the kids, as these schools have much less administration and overhead than traditional district schools. As parents take advantage of school choice – and leave traditional schools – the existing schools are forced to reconsider where they spend time and resources, how they can refocus on the classroom, and ultimately attract families back into their schools.

Arizona currently leads the way in the number of school choice options available to parents. Public school open enrollment, private school choice, charter schools, home schooling and excellent online education are all options used widely in Arizona. That said, only 15 percent of Arizona’s children take advantage of choice options. The number is growing – yet, tens of thousands of students remain on tuition scholarship and charter school waiting lists, waiting to “walk” from schools that aren’t working for them.

In January, thousands of students, teachers, business leaders and public officials celebrated National School Choice Week – bringing attention to the need for more options for parents and how successful a choice is when students are able to move to an environment that better suits their needs. As more students are empowered to “walk” and choose better options, this “rising tide” will lift all boats and force under-performing schools to improve.

The competition effect has been observed and very successful in Florida. Florida has had a simple grading system for public schools for years and offers many options to tens of thousands of parents across the state. When the grading system was implemented in conjunction with choice, not only did the number of failing schools drop dramatically in the first few years, but it also improved many other areas of education — reducing the achievement gap between minority and white students, increasing parental satisfaction and involvement in all schools, and shifting the focus of education from preserving a “system” to serving children.

Arizona offers the broadest number of choice options in the country and is paving the way for more families to take advantage of those programs. Your company can help!

Get involved by taking part in the discussion, supporting school choice, contributing to the Arizona tax credit scholarship programs like Arizona School Choice Trust (participating costs nothing for you or your company!) and by demanding improvement in the existing system.

There is no time to lose. Every year we have more choice, the prospects and outcomes for our workforce improve. Contact me if you want to get involved! Call (623) 414-3429.

 

Arizona Tax Credit, ASCT

Is Your Business Taking Advantage of the Arizona Tax Credit Program?

Is Your Business Taking Advantage of the Arizona Tax Credit Program?

Did you know that Arizona businesses can redirect their entire state tax liability to scholarship organizations that help improve education in Arizona statewide?  If your business is not taking advantage of these credits, please read on.

The Program

The Arizona Tax Credit program allows any C-corporation that pays Arizona corporate income tax to redirect that liability to state approved school tuition organizations (STOs) that provide K-12 education scholarships for economically-disadvantaged children. It costs your business nothing; it’s simply a redirection of tax dollars your business must pay each year. Corporate tax dollars can be given to STOs to fund scholarships for low-income children or designated specifically for scholarships for displaced and disabled students.

Corporations receive a dollar-for-dollar tax credit with the state, therefore allowing corporations to redirect funds that they must already pay to the state of Arizona to the STO at absolutely no cost.

The process to enroll is very simple, and the Arizona School Choice Trust (ASCT) can handle all the paperwork for your corporation. Read more information about the program on ASCT’s website asct.org.

How do these dollars help?

Every single scholarship ASCT gives out changes the course of a student’s life forever and gives a child a chance at graduating, going on to college and becoming a productive member of Arizona’s workforce and business community.

Here’s one example of ASCT’s success stories: Jorge has been on scholarship from ASCT for nearly a decade and is now a senior at Glendale Christian Academy. He says the school has transformed his life and plans to go on to college to pursue a BS in business management with a minor in music and one day open his own business.

How can your business participate?

The process is simple. To take advantage of this tax credit, a corporation contacts ASCT and pledges to make a contribution of $X amount (any amount up to the company’s state tax liability for the year).

ASCT then completes a one-page application for that amount and submits it to the Arizona Department of Revenue (ADOR) for the corporation. If the tax credit cap (more than $24 million this fiscal year) has not been met, the ADOR approves the request within 20 days. The corporation has 10 days from the date of approval by the ADOR to make the contribution. The corporation takes the tax credit on its tax return, but may carry any unused credit forward for up to five years. The corporation may take either the federal deduction or the Arizona state credit, but not both. To claim the credit, the corporation lists the credit on the standard 120 form and files a 335 form attached to the return.

Arizona School Choice Trust mission is to provide hope and opportunity to low-income families by providing tuition scholarships to enable their children to attend private elementary and secondary schools (K-12). We believe that a solid primary education is the key to giving children the opportunity to succeed in life and achieve their dreams, and it is key to providing Arizona a strong, educated workforce.

ASCT is the oldest and most experienced STO. ASCT focuses its scholarships on low-income students who qualify for the National School Lunch Program.  Since 1993, it has  provided more than 10,000 scholarships.

Visit asct.org to find out more about how your business can take advantage of these tax credits and change the lives of students across the state.