Attention donors!  An additional tuition tax credit will be available starting approximately August 1, 2012!  Click here for more information.

Successes
Since it began in 1998, ACSTO has awarded scholarships to more than 19,000 students attending 150 Arizona Christian schools. Over 51,000 visionary Arizona taxpayers have made this possible by donating to ACSTO, and taking advantage of Arizona's unique opportunity to receive a dollar-for-dollar credit against their Arizona state income tax.

ACSTO has awarded more than 90% of its donations received as scholarships although the requirement is to award at least 90%.  The tax credit law, enacted in 1997, did not specify any particular demographic for who should receive scholarships.  However, ACSTO has awarded a majority of its scholarship dollars to students who would meet the means test found in the 2006 corporate scholarship tax credit law.

Whether you are a parent looking for ways to afford Christian education for your child, or an Arizona taxpayer looking for new ways to support Christian education, you are invited to check out our program.


Purpose
The Arizona Christian School Tuition Organization, Inc (ACSTO) was incorporated in 1998 for the sole purpose of implementing the private school tuition tax credit law passed and signed into law in 1997 as A.R.S. Section 43-1089.



ACSTO is a tax exempt charitable organization pursuant to federal tax law, Section 501(c)(3).

The constitutionality of the individual scholarship credit was upheld by the Arizona Supreme Court in 1999.  A federal court challenge was dismissed by the U.S. Supreme Court in Arizona Christian School Tuition Organization v. Winn in 2011.  A link to the opinion and the syllabus are provided below if you would like to read them yourself.

Update: April 2011 U.S. Supreme Court Opinion and Syllabus for ACSTO v. Winn

Leadership
ACSTO was organized by David J. Harowitz and Steven B. Yarbrough (pictured).  Richard Bellah serves as an advisor to the organization.  Each is an attorney in Maricopa County with a significant history of leadership in their local church and various Christian organizations.  Richard has a general practice in Glendale.  David is general counsel and emphasizes estate planning and charitable organizations law in Tempe. Steve serves as executive director. He served four terms as a member of the Arizona House of Representatives and is now a member of the Arizona State Senate.

The Goal of the leadership of ACSTO is to further Christian education by effectively implementing the provisions of this law for the benefit of Christian school students and their families.

Benefits
The Arizona Private School Tuition Tax Credit Law, A.R.S. Section 43-1089, allows a single taxpayer to make a donation to ACSTO for up to $503 and a married couple filing jointly to donate up to $1006, and receive a dollar-for-dollar tax credit against the taxpayer’s Arizona state income tax. If the taxpayer has actual Arizona state income tax less than the maximum allowable, the available credit in a given year is limited to the actual tax.  The law allows a carry forward for up to five years if a donation is made in excess of the actual state income tax liability. Arizona State income tax forms 301 and 323 are used for claiming the credit.

The public school extracurricular activities tax credit of $400 for married couples filing jointly may be taken in addition to the private school tuition tax credit.  These donations should be made directly to the public (including charter) school of your choice.

A taxpayer may also be able to claim a federal deduction for the donation. The taxpayer should consult their tax advisor for specific tax advice.

A.R.S. 43-1089 (G) now allows you to donate up until you file your Arizona income taxes, not later than April 15, and have it count toward the prior tax year at the election of the donor, starting with tax year 2010. A.R.S. 43-1089 (C) allows for a yearly increase to the donation maximum per the Consumer Price Index, starting January 1, 2011.

For more information, please see our Frequently Asked Questions or call us at (480) 820-0403.