Education tax credits

Fourth-grader Ethan Haynie reacts as Grace Kim swoops in to take his queen as they play in the Soleng Tom Elementary School after-school chess program. Tax-credit donations fund the biweekly play.
kelly presnell / arizona daily star

Schools’ tax-credit donations could be cut off for one year
By Rhonda Bodfield
ARIZONA DAILY STAR
Tucson, Arizona Published: 12.18.2008

Soleng Tom Elementary School students have an after-school chess program, compliments of Arizona’s education tax credits.

Gridley Middle School bought soccer uniforms and strengthened its sports program.

Utterback Magnet Middle School used its money to take students to fine-arts performances and to bring in a readers’ theater.

But that revenue stream is on the chopping block — and not just because the slumping economy may scare off some families from making donations this month, as the Dec. 31 deadline approaches.

State lawmakers, facing a deficit that could go as high as $2 billion this year, are discussing a one-year moratorium on tax-credit donations, which are used to fund extracurricular programs in public schools and can be used to support private-school scholarships.

Tax credits allow a dollar-for-dollar reduction in the amount of state income tax owed. In donating to public schools, individuals can give as much as $200 and couples filing jointly can contribute $400. So a couple that owes $500 in state taxes could give $400 to a school and write the state a check for $100.

Here is the full article.