The Friedman Foundation for Educational Choice

Advancing Milton and Rose D. Friedman's Vision of School Choice for All Children

Arizona - Lexie’s Law Corporate Tax Credits

Enacted 2009 • Launched 2009 • Tax-Credit Scholarship

Arizona allows corporations to receive tax credits for donating to School Tuition Organizations (STOs), nonprofits that provide private school scholarships to children with special needs and students who are currently, or have been at any time, part of the Arizona foster care system. The total credits claimed cannot exceed $5 million in a given year.

Latest Stats (2011-12)

  • Students participating: 119
  • Schools participating: 38
  • Scholarship organizations: 5
  • Average scholarship value: $4,921

Program Details

Student Funding
Scholarship amounts may be awarded up to the lesser of the private school tuition or 90 percent of the state funding that otherwise would go to that pupil had he or she remained in public school. That amount varies depending on the services the student’s disability requires. Individual STOs have discretion to award scholarships of less than the allowed amount.

Student Eligibility
Students are eligible if they have been identified by a school district as having a disability under the Individuals with Disabilities Education Act or Section 504 of the Rehabilitation Act, or if they are now, or have ever been, in the Arizona foster care system. Students must also either be an enrollee in a kindergarten or prekindergarten private school program for students with disabilities, a public school student for the prior semester of the current school year or at least 90 days in the previous year, or a dependent of an active-duty member of the military.

Legal Developments
No legal challenges have been filed against the program.

Rules & Regulations
• Income Limit: None
• Prior Year Public School Requirement: Yes
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: 90 percent of state funding
• Testing Mandates: None
• Credit Value: 100 percent
• Total Credit Cap: None
• Budget Cap: $5 million

Governing Statutes
Ariz. Rev. Stat. §§ 15-891, 43-1184, and 20-224.07

Friedman Contact
Robbie Rhinesmith | robbie@edchoice.org

Related Research

6/5/2012 The Greenfield School Revolution and School Choice

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