Does claiming the S-Corporation donation credit limit my ability to claim other tax credits?

No, in addition to the S-Corporation tax credit, donors are eligible to claim the full individual and joint tax credits for donations to public schools, donations to the “Original” tax credit program, and donations to the “Switcher/Overflow” tax program.

Is there a limit to how much income my S-Corporation may donate or pass through?

There is no limit to how much any one S-Corporation may donate and still receive a tax credit. However, total Corporate tax credits offered are capped at $74.3 million for 2017, after which no more credit approvals will be issued by the Department of Revenue.

What forms will my S-Corporation have to fill out?

Your S-corporation will fill out Arizona Form 335, detailing each donation to an STO and any available credit carryover. If this year’s contributions and carryovers are greater or equal to $5,000 the S-Corporation may pass the tax credits through to individuals. The STO will then complete Arizona Form 335-S for each shareholder, with their ownership percentage and the amount of credit available to the individual shareholder. You will then provide copies of their filled out Form 335-S to each shareholder.

What forms will S-Corporation shareholders or partners have to fill out?

Once shareholders/partners receive their Arizona Form 335-S, listing the credit available to them, they will complete Arizona Form 335-I, detailing how much of the credit they will claim. Shareholders/partners will need to further complete the list of all tax credits claimed, Arizona Form 301, noting the amount of the S-Corporation credit claimed on line 19.