Overview of Arizona’s Private School Tax Credit Programs


Individual Tuition Tax Credit Program

A.R.S. 43-1089 | A.R.S. 43-1089 (Eff. 1/1/11) | A.R.S. 43 Ch. 16 (Eff. 1/1/11)

The Individual or Original Tuition Tax Credit Program allows any Arizona taxpayer to redirect a portion or all of their state tax liability to a School Tuition Organization and receive a 100% dollar-for-dollar tax credit for their contribution.

This is a tax CREDIT for supporting school choice, not a tax deduction. At least 90% of every redirected dollar is then awarded by the STO via scholarships to students who choose to attend a private school.

For tax year 2019, an individual can contribute up to $569 and a married couple filing jointly can contribute up to $1,138.

Who is eligible?

ANY student choosing to attend a qualified Arizona private school.


The PLUS, “Overflow” or “Switcher” Tuition Tax Credit Program

Arizona taxpayers with state tax liability that is greater than the maximum amount above can participate in this program.

For tax year 2019, an individual can contribute up to $566 and a married couple filing jointly can contribute up to $1,131.  (Taxpayers must first give the maximum under the Individual Tuition Tax Credit Program, anything over that amount “rolls over” into the PLUS Program)

This means that between both programs, individual taxpayers can contribute up to $1,135 and married couples filing jointly can contribute up to $2,269 AND receive 100% dollar-for-dollar tax credit.

Who is eligible?

This program is specifically for Preschool students with disabilities, students who are entering Kindergarten or students leaving an Arizona public school and choosing to attend a private school.


Corporate Tuition Tax Credit Program

A.R.S. 43-1183 | A.R.S. 43 Ch. 15 (Eff. 1/1/11)

The Corporate Tuition Tax Credit Program allows any certain Arizona businesses to redirect a portion or all of their state corporate tax liability to a School Tuition Organization and receive a 100% dollar-for-dollar tax credit for their contribution. This is a tax CREDIT for corporations supporting school choice, not a tax deduction. At least 90% of every redirected dollar is then awarded by the STO via scholarships to students who choose to attend a private school.

The Corporate Tuition Tax Credit Program is capped for FY 19-20 at $106.9M.  This cap increases by 20 percent each year and opens on July 1, 2019.

Who is eligible?

Students receiving scholarships under this program must have a household income below 185 percent of the income eligible for free and reduced price lunch (185 percent of the Federal Poverty Level).  Students must also have previously attended a public school or be entering kindergarten.


Disabled/Displaced Pupils Corporate Tax Credit Program (Lexie’s Law)

A.R.S. 43-1184 | A.R.S. 43 Ch. 15 (Eff. 1/1/11)

Lexie’s Law allows any Arizona Corporation to redirect a portion or all of their state corporate tax liability to a School Tuition Organization and receive a 100% dollar-for-dollar tax credit for their contribution. This is a tax CREDIT for corporations supporting disabled/displaced students, not a tax deduction. At least 90% of every redirected dollar is then awarded by the STO via scholarships to students who choose to attend a private school.

The Lexie’s Law Program is capped at $5,000,000 a year.

Who is eligible?

Students in Preschool through 12thgrades are eligible for this scholarship if they have ever received an IEP (Individualized Education Plan) or 504 plan from a public school.  Students (K-12) who have ever been in the Arizona foster care system are also eligible.