Arizona’s School Tuition Organization (STO) tax credits allow both individuals and corporations to redirect their Arizona state tax liability into scholarships for K–12 private school students. These credits are dollar-for-dollar against state income tax owed, are non-refundable, and may be carried forward for 5 consecutive tax years. Community Reinvestment: Low Income Based Scholarships Inc. is an AZDOR-certified STO that directly addresses the largest gap in educational funding in Arizona—access to high-quality education for low-income and foster-care students.

Individual Taxpayers – Arizona provides two separate credits for individuals:

• Original Individual STO Credit (Form 323): Up to $769 single / $1,535 married filing jointly.
• Switcher/Overflow STO Credit (Form 348): Up to $766 single / $1,527 married filing jointly.

Timing election rule: Contributions made during the tax year or between January 1 and April 15 of the following year can be applied to the prior year’s return.

1. Visit lowincomebasedscholarships.com – Click DONATE NOW
2. Submit payment, receive an official receipt from Community Reinvestment (required for Form 323/348).
3. File the receipt with your return using AZDOR Form 323 and/or Form 348.

Total Maximums for 2025: Single Taxpayers: $1,535.00 / Married Filing Jointly: $3,062.00

Corporate Taxpayers – Corporations (including C corporations, insurance companies, and certain pass-throughs):
Low-Income Corporate STO Credit (A.R.S. §43-1183): Statewide cap per fiscal year. Requires pre-approval from AZDOR and funding within 20 days. Pre-approval must be submitted by a STO on behalf of the corporation; once approved, the contribution must be funded within 20 days. Both credits may be carried forward for five years.

1. Visit lowincomebasedscholarships.com.
2. Navigate to the Non-Binding Corporate Pledge Form to express intent to donate.
3. Community Reinvestment will handle the AZDOR pre-approval process on behalf of the corporation.
4. After approval, fund the approved amount within 20 days.
5. Retain receipts and file with the Arizona corporate return using Form 335 (Low-Income Corporate) or Form 341 (Disabled/Displaced Corporate).

Compliance & Recordkeeping

• Receipts from Community Reinvestment serve as proof of donation (date, amount, and program).
• Donations must be made to an AZDOR-certified STO (Community Reinvestment is certified; confirm on AZDOR’s current list at time of donation).
• No earmarking is allowed for specific students under Arizona law.
• Unused credits may be carried forward for up to five consecutive years.
•For corporations, ensure the 20-day funding rule is observed after pre-approval.

Community Reinvestment: Low Income Based Scholarships Inc. is the only STO in Arizona serving 100% low-income and foster care applicants exclusively. This ensures every scholarship dollar is directed to families most in need, in compliance with Arizona’s Low/Moderate Income definitions and the Free or Reduced Lunch Program guidelines. By contributing, donors help close the largest gap in educational funding in Arizona.

Mission

Community Reinvestment: Low Income Based Scholarships Inc. unlocks the potential of students from vulnerable communities by transforming tuition funding into a launchpad for leadership, innovation, and lasting impact.

Vision
Today’s investors in education become tomorrow’s partners in progress—fueling a wave of leaders, innovators, and visionaries who will redefine what’s possible for our communities, our economy, and our world.

Sources
• Arizona Department of Revenue – Tax Credits Overview: https://azdor.gov/tax-credits
• Arizona Department of Revenue – Form 323 (Individual Original STO Credit): https://azdor.gov/forms/tax-credits/form-323
• Arizona Department of Revenue – Form 348 (Individual Switcher STO Credit): https://azdor.gov/forms/tax-credits/form-348
• Arizona Department of Revenue – Form 335 (Corporate Low-Income STO Credit): https://azdor.gov/forms/tax-credits/form-335
• Arizona Department of Revenue – Form 341 (Corporate Disabled/Displaced STO Credit): https://azdor.gov/forms/tax-credits/form-341
• Arizona Revised Statutes – A.R.S. §43-1183 (Low-Income Corporate Credit): https://www.azleg.gov/arsDetail/?title=43
• Arizona Revised Statutes – A.R.S. §43-1184 (Disabled/Displaced Corporate Credit): https://www.azleg.gov/arsDetail/?title=43
• Arizona Department of Revenue – Certified STO List: https://azdor.gov/certified-school-tuition-organizations
• Community Reinvestment: Low Income Based Scholarships Inc. – Donate Now: https://lowincomebasedscholarships.com/donations.php
• Community Reinvestment: Low Income Based Scholarships Inc. – Non-Binding Corporate Pledge: https://lowincomebasedscholarships.com/non-binding-pledge.php
• findCRA – Community Reinvestment Activities Database: https://findcra.com