Instructions For Form 341 - Credit For Corporate Contributions To School Tuition Organizations For Displaced Students Or Students With Disabilities - 2014
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1
22014 Credit for Corporate Contributions
to School Tuition Organizations for
Arizona Form
Displaced Students or Students With Disabilities
341
A taxpayer shall not claim a credit for this credit and the
Obtain additional information or assistance by calling one of
credit provided under ARS § 43-1183, claimed on Arizona
the numbers listed below:
Form 335, with respect to the same contribution.
Phoenix
(602) 255-3381
From area codes 520 and 928, toll-free
(800) 352-4090
CREDIT PREAPPROVAL PROCEDURE
Obtain tax rulings, tax procedures, tax forms and
Before claiming the credit, obtain a copy of the school
instructions, and other tax information by accessing the
tuition organization’s preapproved application. Include a
department's website at
copy of the preapproved application with Form 341. Failure
to do so could result in a disallowance of this credit.
General Instructions
The department will preapprove the credits on a first-come,
first-served
basis.
The preapproval process works as follows:
Arizona Revised Statutes (A.R.S.) § 43-1184 provides a
nonrefundable corporate income tax credit for contributions
Before making the contribution, the taxpayer notifies
made to a school tuition organization that provides
the school tuition organization of the intended amount.
scholarships or grants to displaced students or students with
The school tuition organization requests preapproval
disabilities. The school tuition organization must be certified
from the Arizona Department of Revenue.
pursuant to Chapter 15 of Title 43 at the time of donation.
The Arizona Department of Revenue preapproves or
Contributions designated as being for the direct benefit of
denies the request within twenty days after it has
any specific student will not qualify for the credit. This
received the request, and notifies the school tuition
credit is in lieu of any deduction taken under Internal
organization.
Revenue Code § 170 for state tax purposes.
If the request is preapproved, the school tuition
organization notifies the taxpayer immediately.
The tax credit is equal to the amount the department has
preapproved, if the taxpayer has made that amount of
The taxpayer must make the contribution within twenty days
contribution to the school tuition organization within twenty
of receiving notice from the school tuition organization.
days of when the school tuition organization notified the
QUALIFIED SCHOOL TUITION ORGANIZATION
taxpayer of the preapproval.
REQUIREMENTS
The amount of total credits the Arizona Department of
The school tuition organization receiving contributions under
Revenue may allow cannot exceed $5 million in any fiscal
this program must be certified pursuant to Chapter 15 of
year. The state’s fiscal year begins on July 1, and ends on
Title 43 at the time of donation.
June 30 of the following year.
For 2014, each educational scholarship or tuition grant is
The tax credit is available only to corporate taxpayers. A
limited to the cost of tuition for a qualified student to attend the
partnership may pass this credit through only to its corporate
qualified school or 90% of the amount of state aid that
partners, each of which may claim a pro rata share of the
otherwise would be computed for the student as provided in
credit based on ownership interest. An S corporation may
Title 15, Chapter 9, Article 5, whichever is less.
claim this credit against income Arizona is taxing at the
corporate level, or the S corporation may elect to pass this
Specific Instructions
credit through to only its exempt organization shareholders,
each of which may claim a pro rata share of the credit based
Complete the name and employer identification number
on ownership interest.
section at the top of the form. Indicate the period covered by
The credit is available to an exempt organization that is
the taxable year. Include the completed form with the tax
subject to corporate income tax on unrelated business
return.
taxable income (UBTI). The credit must result from the
All returns, statements, and other documents filed with the
activities that generate UBTI.
department require a taxpayer identification number (TIN).
Co-owners of a business, including corporate partners of a
The TIN for a corporation, an exempt organization with
partnership or exempt organization shareholders of an
UBTI, an S corporation, or a partnership is the taxpayer's
S corporation, may each claim only the pro rata share of the
employer identification number. Taxpayers that fail to
credit allowed based on the ownership interest. The pro rata
include their TIN may be subject to a penalty.
share that would be distributed to non-eligible partners or
Part 1 - Current Taxable Year’s Credit
shareholders is lost. The total of the credits allowed all such
owners may not exceed the amount that would have been
Calculation
allowed for a sole owner of the business.
List each school tuition organization’s name, address, credit
If the allowable tax credit exceeds the taxes otherwise due,
approval number, and approved contribution amount. If you
or if there are no taxes due, the amount of the credit not used
made contributions to more than ten organizations, complete
to offset taxes may be carried forward for not more than five
and attach additional schedules.
consecutive taxable years as a credit against subsequent
years' income tax liability.
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