By Cort Monroe, Ed.D., CCUSD Superintendent
Happy New Year! Have you ever heard of the Arizona Tax Credit Donation? This is an easy way to support the students, schools, and programs in the Cave Creek Unified School District (CCUSD).
It benefits qualified activities or qualified programs at $400 for married couples filing jointly and, for individual taxpayers, the limit is $200.
Here’s how it works:
Any individual (parent or not) can contribute to the school of his/her choice to help fund qualified activities or qualified programs and receive a tax credit from the state. Contributions are donated directly to schools.
An Arizona tax law (A.R.S. 43-1089.01) allows individuals or married couples to contribute funds to a public school and receive a tax credit. Donors can reduce the amount owed on their state income taxes by up to $400 for contributions to support qualified activities or qualified programs at any Arizona public school.
A contribution that is made on or before April 15, 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 the last day of that taxable year.
A tax credit is different from a tax deduction because it is an actual credit against the income tax imposed upon an individual.
Q. What public schools/grades are eligible for the credit?
A. Public schools that provide instruction in grades K-12 are eligible for the credit. Preschools do not qualify for the credit.
Q. What are some qualified activities or qualified programs?
A. Extracurricular activities, character education programs, standardized testing fees for college credit, preparation courses for standardized testing, the career and technical education industry certification assessment, and CPR training.
Q. What are character education programs?
A. A character education program is a program defined in ARS 15-719. Under this statute each district may develop its own course of study for each grade. At a minimum, the character education program must include instruction in the definition and application of at least six of the following character traits: truthfulness, responsibility, compassion, diligence, sincerity, trustworthiness, respect, attentiveness, obedience, orderliness, forgiveness, virtue, fairness, caring, citizenship, and integrity.
Q. Must a public school issue a receipt to the taxpayer for contributions made or fees paid for qualified activities or qualified programs?
A. Yes. The receipt includes the public school name, school district number and CTDS number, taxpayer name and address, amount paid, date paid, and a description of the activity or program being supported.
Q. What are extracurricular activities?
A. Extracurricular activities are school sponsored activities that may require enrolled students to pay a fee in order to participate. Generally, educational or recreational activities that supplement the educational program of the school are considered to be extracurricular activities.
Q. Can a taxpayer make a payment of fees to an organization (e.g., PTA, school foundation, or
school club) which then gives the funds in a lump sum to the school or directly pays for
qualified activities or qualified programs?
A. No. ARS 43-1089.01 requires that the fees be paid “to a public school.” Therefore, the payment must be made directly to the public school.
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Thank you for your support. The Cave Creek Unified School District equips students with essential knowledge and skills to become critical thinkers who pursue their passion in a dynamic global society. The tax credit donation is one way in which you can help support this vision.
