Catholic Education Arizona (CEA) shared some insights on the history of tuition tax credits in the state. 

“The state of Arizona allows taxpayers to redirect their tax liability to school tuition organizations that provide scholarships to students attending private schools,” a release issued on the CEA website said. Individuals and corporations alike can direct tax dollars to the Catholic Education Arizona General Scholarship Fund, which is available for Catholic schools with the “highest unmet need, or to a Catholic school(s) of their choice.”

A tuition tax credit is simply a “dollar-for-dollar credit” that is given for contributions to certified tuition organizations. Rather than sending money to the state of Arizona, tax credits allow taxpayers to direct their money to specific educational organizations. 

At CEA, the goal is to give underserved children the funding needed to provide excellent education and change the students’ lives so that they can impact society for the good. The organization has awarded more than 138,000 scholarships through the Arizona Private Education Tax Credit. 

The legislation making tax credits for school-tuition organizations possible was passed in 1997. To legally qualify, a School Tuition Organization (STO) must be a 501(c)(3) entity that distributes in student scholarships a minimum of 90% of the contributions made to it. 

As of the 2020 tax year, single filers can direct $1,183 to STOs and joint filers can contribute up to $2,365. 

“Corporations can direct 100% of their corporate state tax liability to Catholic Education Arizona on behalf of the Catholic schools in the Diocese of Phoenix, St. Michael Indian School and Boys Hope Girls Hope of Arizona,” CEA said in the release. 

There are special tuition tax credits available for low income programs and disabled student programs.

For more information on how to get involved in fostering great education with your tax dollars, reach out to CEA or visit catholiceducationarizona.org.