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State guide · Research 2026-09-08

Arizona STO Requirements

School Tuition Organization (STO)

State Program OnlyAZ
Informational only, not legal or tax advice. Requirements and program availability may change. Revalidate for the applicable program year. SGOone uses “SGO” broadly; each state's official terminology and separate program rules still matter.

State Overview

Onboarding status
State Program Only — dated snapshot
State program type
Traditional tax-credit scholarship
Program name(s)
Individual Income Tax Credit; Switcher Individual; Low-Income Corporate; Disabled/Displaced Corporate STO programs
Official terminology
School Tuition Organization (STO)
Administering agency/agencies
Arizona Department of Revenue

Four mature STO tax-credit programs. Arizona was not on the IRS §25F advance-election list dated 2026-07-24.

October 2026 federal regulatory update · Temporary state procedures and proposed SGO operating rules; current participation must be checked with the IRS.

Federal participation — verified October 23, 2026: Arizona does not appear on the IRS advance-election list for 2027.

IRS list dated October 22, 2026. Neither an advance election nor this guide establishes that an individual organization is listed. View IRS source.

Original state implementation research — 2026-09-08

No IRS advance election shown as of 2026-07-24. Arizona has mature state STO programs, but it was not on the IRS advance-election list dated 2026-07-24.

Historical IRS source date: 2026-07-24. References to forthcoming federal regulations predate the October 1 release.

Arizona State Program Requirements

According to the supplied research snapshot. Program-specific exceptions, current forms and annual guidance must be checked.

Donation Requirements

Individual programs prohibit donor designation of a student as a condition of the gift and prohibit beneficiary swapping. Recommendations may be permitted but awards cannot be based solely on donor recommendations.

State research dated 2026-09-08 — revalidate for the applicable program year. A.R.S. Title 43, Chapters 15–16; §§43-1089 et seq. · State source

Student & Family Eligibility

Eligibility varies by the four STO programs: some are broad individual-credit programs, while corporate programs include low-income and disabled/displaced eligibility conditions.

State research dated 2026-09-08 — revalidate for the applicable program year. A.R.S. Title 43, Chapters 15–16; §§43-1089 et seq. · State source

Four mature STO tax-credit programs. Arizona was not on the IRS §25F advance-election list dated 2026-07-24.

Optional Checklist Preview

These are manual organizational tasks, not automated regulatory checks. State tracks use the 2026 research snapshot; federal tracks concern the 2027 pathway. Review the October update before using older federal checklist wording; these tasks are planning aids, not a current legal determination.

State program

  • Confirm Arizona nonprofit status and §501(c)(3) exempt or applied-for status.
  • Select applicable STO program(s) and obtain ADOR certification.
  • Monitor minimum 90% allocation of annual tax-credit contributions to scholarships.
  • Block contributions conditioned on designation of a specific student; block beneficiary swapping.
  • Ensure scholarship availability is not limited to students of one school.
  • If organization has a website, capture and publish required scholarship distribution disclosures.

Turn this guide into your SGO checklist

SGOone organizations can add this optional checklist to their account, track progress, add notes, and work toward a State Readiness badge.

Use This Checklist in SGOone

This badge indicates that the organization has completed SGOone's optional state readiness checklist. It does not represent certification, approval, or a compliance determination by the state or SGOone.

Sources & References

Links and currentness notes come from the supplied workbook. Secondary mirrors are labeled; not every current annual form or primary instruction has been independently revalidated.

Preview of Forthcoming Section 25F Guidance

U.S. Department of the Treasury · Primary official

2026-06-09; proposed regulations still forthcoming as of 2026-09-08 · Previewed implementation mechanics; pending/not-final items

Reference release 2026.1 · SGOone_50_State_Requirements_Hub_2026-09-08.xlsx. Some workbook source IDs are duplicated; citations here are bound by actual URL and state, not legacy ID prefixes.