Frequently Asked Questions
Tuition tax credit donations can seem intimidating at first, but we are here to help. We’ll do everything we can to help the process go as smoothly as possible for you!
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Questions about the Individual Credit
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Arizona law allows a dollar-for-dollar state income tax credit for donations to Students First Foundation, an Arizona Department of Revenue-certified school tuition organization. Your donation will give students, with a verified financial need, tuition assistance so they can afford private school education.
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You must contribute to the Students First Foundation by April 15th of the year immediately following the tax year for which you are filing. Checks, Visa, MasterCard, American Express, Discover, and payment plans are accepted. You may also donate online.
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All donations are placed in a general fund and distributed to students based on verified financial need. Students First Foundation has never accepted donor-designated contributions. The state tax credit law allows donors to recommend a student or school for a tuition scholarship, and we place a high priority on these recommendations and will follow the intentions of the donors to the fullest extent the law will allow. By Arizona law, a school tuition organization cannot award, restrict, or reserve scholarships solely on the basis of donor recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer's own dependent.
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You should consult your tax adviser for specific tax advice concerning deductibility for your situation.
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This is an Arizona tax credit program. To be able to take the donation as a dollar-for-dollar tax credit the donor must have an Arizona tax liability and be filing an Arizona tax return. People with no income in Arizona do not file Arizona taxes and therefore, their states may not accept the credit.
With that said, Students First Foundation is a 501(c)(3) non-profit organization. If people out-of-state would like to support your family, they can donate. Instead of being a dollar-for-dollar tax credit, these out-of-state donations are taken as a federal tax deduction. Donors may claim it on their federal tax forms just like they do every other charitable donation they make.
Non-tax credit donations are not limited by the maximums set by the state for tax credit donations. Those donating from a state other than Arizona should consult a tax adviser for specific tax advice concerning deductibility for their situation.
Questions about Corporate Credits
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Arizona law allows a dollar-for-dollar state income tax credit for “C” & “S” corporations and insurance companies that pay a premium tax for contributions to Students First Foundation, an Arizona Department of Revenue-certified school tuition organization. These donations give students with a verified financial need tuition assistance so they can afford private school education.
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Yes. The original law set a limit of $10 million for corporate tax credit donations and allowed a 20% increase in this amount each fiscal year. There is a statewide cap of $135,000,000 for the fiscal year 2026–27 that will be available on July 1, 2026 at 10:00 AM. Students First Foundation will submit applications to the Arizona Department of Revenue on July 1, 2026.
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Yes and no. There is a limit to how much corporations can donate in total each fiscal year for a tax credit. However, one corporation could donate the entire tax credit amount available.
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There is a minimum aggregate contribution of $5,000 for “S” corporations only.
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Contact our Tax Credit Director, to initiate the process before July 1, 2026, as the cap is reached quickly. In most years, the cap is consumed in less than one day.
The application for approval must be submitted by Students First Foundation to the ADOR.
If the program cap has not been met, ADOR approves the request within 20 days and notifies Students First Foundation.
Students First Foundation will immediately notify the corporate donor of approval.
The corporation has 20 days from the date of approval by ADOR to make the contribution payable to Students First Foundation.
The corporation takes the tax credit on its tax return but may carry any unused credit forward for up to five years after the contribution was made.
To claim the credit, the corporation lists the credit on the standard 120 form and files a 335 form attached to the return. The corporation may take either the federal deduction or the Arizona state credit, but not both.
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