Arizona Scholarship Granting Organizations

Arizona's four STO programs

Arizona funds private school scholarships through four separate tax credit programs, all administered by the Arizona Department of Revenue. Arizona uses the term School Tuition Organization (STO) rather than SGO.

Most families receive scholarships from the individual credit programs (Original and Switcher). Lower-income families and students with disabilities may also qualify for corporate-funded scholarships.

Individual credit scholarships

Original Individual Credit

Every child attending a qualified Arizona private school is eligible. There is no income requirement and no dollar cap on individual scholarships (awards cannot exceed tuition). Each STO sets its own priorities, but financial need must be a factor by law.

Pre-K students with a qualifying disability (IEP or MET from an Arizona public school) are also eligible. Section 504 plans do not qualify preschoolers.

Switcher Individual Credit

Students must meet at least one of these categories:

• Attended an Arizona public or charter school full-time for 90+ days in the prior year, then transferred to private school
• Enrolling in private school kindergarten
• Pre-K student with disabilities (IEP or MET)
• Dependent of active-duty military stationed in Arizona
• Previously homeschooled (not on ESA immediately prior)
• Moved to Arizona from out of state immediately before enrolling
• Former ESA participant who did not renew
• Prior Switcher or Corporate scholarship recipient who continued at a private school

There is no income limit for the Switcher program. Students can receive scholarships from both the Original and Switcher programs (but not from the same STO in the same year).

Corporate credit scholarships

Low-Income Corporate Credit

For families with income at or below 185% of the Federal Reduced-Price Lunch guideline — approximately $110,000 for a family of four (2025-26).

Students must meet the income threshold and one of the same categories as the Switcher program (public school transfer, kindergartner, military dependent, etc.). Maximum awards: $6,500 for K-8 and $8,300 for 9-12 (2025-26), increasing $200 per year.

Foster children's eligibility considers only the child's personal income, not the foster family's income.

Lexie's Law (Disabled/Displaced Students)

Students qualify if they have an IEP, MET, or Section 504 plan, or are currently or formerly in Arizona foster care. Maximum award is the lesser of tuition or 90% of state per-pupil funding.

What scholarships cover

All four programs cover tuition and required fees only — fees that apply to and are required of every student (application fees, registration fees, facility fees).

Not covered: transportation, food, lodging, textbooks, curriculum materials, tutoring, therapies, optional activity fees, or online learning programs.

Students can receive scholarships from multiple STOs and program types, but the total cannot exceed annual tuition.

Important restrictions

• ESA or STO — not both. Students cannot receive ESA funds and STO scholarships in the same school year. This is per-student, not per-family — one sibling can use ESA while another receives STO scholarships. The choice locks in for the full contract year (July 1 through June 30).
• No self-dealing. Parents cannot donate to an STO and recommend their own child.
• Full-time enrollment required. Students must attend a qualified Arizona private school full-time.

How to apply

There is no centralized state application. Each STO manages its own process:

1. Find an STO — browse the STOs listed on this page, or see ADOR's certified STO list
2. Check eligibility — confirm which programs you qualify for (especially Switcher and Corporate categories)
3. Apply directly through your chosen STO — most open applications between February and June
4. Gather documents — tax returns, public school verification forms (for Switcher/Corporate), IEP/504 documentation (for Lexie's Law or Pre-K eligibility)

How Arizona's STO tax credits work

Arizona offers 100% dollar-for-dollar state income tax credits for donations to certified School Tuition Organizations — for both individuals and businesses. All credits are nonrefundable with a 5-year carry-forward.

Individual donors

Individuals can claim credits under two programs, effectively doubling their credit:

Combined maximum: $3,062 per couple (TY 2025) — $1,535 Original + $1,527 Switcher.

How to donate:

1. Choose a certified STO from the list on this page or ADOR's directory
2. Donate directly — no reservation or pre-approval needed
3. Claim the credit on your Arizona return using Forms 323 and 348
4. Extended deadline — donations made January 1 through April 15 can be claimed on the prior year's return

Credit caps increase annually for CPI inflation and cannot decrease. TY 2026 caps: $787/$1,570 (Original) and $784/$1,561 (Switcher).

Corporate donors

Businesses can donate under two corporate programs:

How to donate (corporate):

1. Contact an STO — the STO submits a corporate donation application to ADOR on your behalf
2. Wait for ADOR approval — ADOR has 20 days to approve or deny
3. Remit funds within 20 days of approval
4. Claim the credit on your corporate return

S-corp pass-through: S-corporations can claim at the entity level or pass through to individual shareholders (pro rata). The corporate credit passed through does not count against the individual's Original or Switcher limits.

Corporate cap reservations open the first week of July each fiscal year and are allocated first-come, first-served.

Designation restrictions

• Individual donors may recommend a student or school, but STOs cannot award based solely on recommendations. You cannot designate your own dependent.
• Corporate donors may recommend a specific school but not individual students.
• 33 of 58 certified STOs accept donor recommendations.

Program impact

Arizona's STO programs — the nation's first tax-credit scholarships (1997) — have collectively channeled approximately $2.9 billion in donations and $2.4 billion in scholarships since inception.

Participation has declined as families migrate to Arizona's universal Empowerment Scholarship Accounts (ESA) program, which grew to 96,800 students in 2025-26. Your donation still matters — STO scholarships remain the primary option for families who don't use ESA, and multiple STOs report waiting lists.

Recent legislative change: SB 1747 (2024) froze the corporate credit cap at $135M (down from ~$158M) and added foster care students as eligible recipients.