43-1089. Credit for contributions to school
tuition organization; definitions
(L10, Ch. 188, sec. 1 & Ch. 293, sec. 1. Eff. 1/1/11)
A. A credit is allowed against the taxes imposed by this title for the amount of
voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to
section 43-401, subsection I during the taxable year to a school tuition organization
that is certified pursuant to chapter 16 of this title at the time of donation. Except as
provided by subsection C of this section, the amount of the credit shall not exceed:
1. Five hundred dollars in any taxable year for a single individual or a head of
household.
2. One thousand dollars in any taxable year for a married couple filing a joint
return.
B. A husband and wife who file separate returns for a taxable year in which they
could have filed a joint return may each claim only one-half of the tax credit that would
have been allowed for a joint return.
C. For each taxable year beginning on or after January 1, the department shall
adjust the dollar amounts prescribed by subsection A, paragraphs 1 and 2 of this section
according to the average annual change in the metropolitan Phoenix consumer price index
published by the United States bureau of labor statistics, except that the dollar amounts
shall not be revised downward below the amounts allowed in the prior taxable year. The
revised dollar amounts shall be raised to the nearest whole dollar.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on
the claimant's income, or if there are no taxes due under this title, the taxpayer may
carry the amount of the claim not used to offset the taxes under this title forward for
not more than five consecutive taxable years' income tax liability.
E. The credit allowed by this section is in lieu of any deduction pursuant to
section 170 of the internal revenue code and taken for state tax purposes.
F. The tax credit is not allowed if the taxpayer designates the taxpayer's
contribution to the school tuition organization for the direct benefit of any dependent
of the taxpayer or if the taxpayer designates a student beneficiary as a condition of the
taxpayer's contribution to the school tuition organization. The tax credit is not allowed
if the taxpayer, with the intent to benefit the taxpayer's dependent, agrees with one or
more other taxpayers to designate each taxpayer's contribution to the school tuition
organization for the direct benefit of the other taxpayer's dependent.
G. For the purposes of this section, a contribution, for which a credit is claimed,
that is made on or before the fifteenth day of the fourth month following the close of
the taxable year may be applied to either the current or preceding taxable year and is
considered to have been made on the last day of that taxable year.
H. For the purposes of this section:
1. "Handicapped student" means a student who has any of the following conditions:
(a) Hearing impairment.
(b) Visual impairment.
(c) Developmental delay.
(d) Preschool severe delay.
(e) Speech/language impairment.
2. "Qualified school":
(a) Means a nongovernmental primary school or secondary school or a preschool for
handicapped students that is located in this state, that does not discriminate on the
basis of race, color, handicap, familial status or national origin and that satisfies the
requirements prescribed by law for private schools in this state on January 1, 1997.
(b) Does not include a charter school or programs operated by charter schools.
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