Taken from www.acsi.org. Select the Programs tab, then Legal Legislative Services, and then School Choice Issues.
School Choice Programs
Personal Tax Credits for School Tuition Organizations
Personal tax credits for school tuition organizations provide a credit on personal income taxes for donations to school tuition organizations (STOs), which are privately run nonprofit organizations that support privateschool scholarships. Individual taxpayers contributing to STOs may claim a dollar-for-dollar credit of up to $500, and married couples filing jointly may claim up to $1,000. Any nonprofit that wants to operate as an STO may do so.
Corporate Tax Credits for School Tuition Organizations
Corporate tax credits for school tuition organizations provide a credit on corporate income taxes for donations to school tuition organizations (STOs), which are privately run nonprofit organizations that support privateschool scholarships. This program is modeled after Arizona’s existing personal tax credit for donations to STOs, and the two programs work in tandem. All organizations registered as STOs may participate in both programs. Corporate taxpayers contributing to STOs may claim a tax credit equal to the full amount of their contribution.
Displaced Pupils Choice Grants
Displaced pupils choice grants provide vouchers to foster care students, allowing them to attend the private school of their choice. The maximum value of the voucher is $5,000. The value of the voucher may not exceed the actual tuition and fees paid to the private school.
Scholarships for Pupils with Disabilities
Scholarships for pupils with disabilities provide vouchers to special-education students in public schools, allowing them to attend the private school of their choice. After students are admitted to private schools, they apply to the state for a voucher. The maximum dollar value of a student’s voucher is equal to the “base support level” of state funding that the student would have generated if he or she had remained in public school. This amount varies depending on factors such as the severity of the student’s disability. The value of the voucher may not exceed the actual tuition and fees paid to the private school.
Testimonials
Paradise Valley Christian Preparatory School
Paradise Valley Christian Preparatory (PVCP) has participated in the Arizona tuition tax credit program since 1998. The value to our individual students and families who receive tax credits is immeasurable. The school had an enrollment of 420 students last year, and 312 of them received an average award of $1,837 toward tuition costs. The school also provided financial aid assistance to 49 qualifying students. Additionally, 34 percent, or 141 students, received some form of tuition discount outside of tax credits and financial aid.
The school demographics reveal several socioeconomic and ethnic differences. There is a 15 percent minority student population at PVCP. The family incomes range from the severest level, that of unemployment (a level that continues to grow monthly), to the uppermiddle- class level. The median family income receiving financial aid for a family of four is $35,000. These families rely solely on tuition tax credits and financial aid to keep their children enrolled at PVCP. We continue to see the number of families in financial crisis growing.
These numbers speak for themselves with regard to the value of and the need for the Arizona tuition tax credit for families at Paradise Valley Christian Preparatory. This current school year, 2008–2009, will see an increase in the number of families actively recruiting tuition tax credit dollars in order to remain in the school of choice that best meets the needs of their children. The cost to educate students at PVCP falls well below the Arizona expenditure per pupil, and the school yields a higher academic performance result.
As the head of school at Paradise Valley Christian Preparatory, I remain hopeful that we will continue to provide to families such a key decision as a “choice” in selecting the school that best fits their children’s educational needs through the Arizona tuition tax credit law.
—Sheryl J. Temple, Headmaster
Northwest Christian School
The Arizona tax credit laws provide great relief to families desiring a private education for their children. Last year, more than 66 million dollars were donated toward private education in the state of Arizona through the individual and corporate tax credit programs. Our school alone, as the largest, single school recipient in Arizona, will receive over 1.5 million dollars in tax credit funds for this school year. Many of our families would otherwise not be able to afford the increasing costs of private education. If this tax credit opportunity were ever taken away, it would significantly hinder hard-working moms and dads from sending their children to the private school of their choice. Moreover, eliminating the tax credit would be an enormous blow to the private-school movement in Arizona and would speculatively even lead to the downfall of many high-performing and strong private schools. We covet the tax credit here in Arizona. It has proved to be a tremendously successful program that provides a clear benefit to many families and accordingly to many private schools in Arizona.
—Matt Davidson, Superintendent
One of the greatest blessings came about for the community when the state of Arizona passed the tax credit law. It has provided the option and opportunity for quality Christian education. In Scripture there are many things that the Lord offers, but our part and responsibility is to believe, accept, and act on those things He is presenting to us. The same principle applies in relation to the tax credit process. The means are available to have a significant portion of a family’s tuition cost paid for through this process. We consider this an issue of wise stewardship to pursue the opportunities that are available, and in so doing, there are other resources freed up to direct toward other kingdom work. Having some basic understanding of how the process works and how this can benefit individual families, the school, and the individual donors is a blessing for everyone that participates in the process. There are many that have been significantly blessed by this, and everyone can and should participate in this to the fullest degree.
—Scott Miller, Parent
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