Each student requires a separate application, however only one application is required per school year (not per award).
What types of scholarships are available?
123TaxCredit.Com (123) awards four different types of tuition scholarships, Original, Switcher/Excess, Low-Income and Disabled/Displaced.
These scholarships are funded through the tax credit donations which we receive. If you have completed a scholarship application, your student will be considered for each type of scholarship which they qualify for.
Original Scholarships are funded by the Original Individual tax credit law, enacted in 1997 as ARS 43-1089. Any student who is either enrolled, or in the enrollment process at any private school in Arizona is eligible to be considered for an Original Tax Credit Scholarship. These scholarships are funded through donations to the Original Tax Credit.
Switcher/Excess Scholarships are funded by the Switcher/Excess tax credit law which took effect in August of 2012 as ARS 43-1089.03. In order to be eligible, students must fall under one of four categories.
- Student attended an AZ public or charter school for at least 90 days, or a full semester, in the prior school year, and transferred to a private school.
- Student is enrolled in Kindergarten.
- Student is a dependent of a member of the US Armed Forces who is stationed in Arizona under military orders;
- Student previously received a Corporate or Switcher scholarship, and has continued in private school ever since.
To qualify for low-income scholarship the family income cannot exceed 342.25% of the poverty level AND to whom any of the following apply:
- Attended a public school as a full-time student for at least 90 days of the prior fiscal year or one full semester and then transferred from the public school to a private school. Those students who transfer to a qualified school after the first full semester are eligible to receive a scholarship that same academic year; OR
- Is enrolling in a private school kindergarten; OR
- Is enrolling in a private preschool program for students with disabilities; OR
- Is a dependent of a member of the armed forces of the United States who is stationed in
Arizona pursuant to military orders; OR
- Received for any prior year a scholarship under one of the above criteria OR
- from the original individual donation program or the switcher individual donation program if the child continued
to attend a private school in subsequent years.
To qualify for a scholarship under the disabled/displaced corporate tax credit, the student must meet one of the following prerequisites:
- Student has a current or expired Multidisciplinary Evaluation Team (MET) report or Individual Education Plan (IEP) from an Arizona public school (for preschool and K-12); OR
- Student has a current or expired 504 plan from an Arizona public school (for K-12 only); OR
- Student was placed at one time in the Arizona foster care system (for K-12 only and must be verified by the Arizona Department of Child Safety).
How Do I Receive a Scholarship For My Child?
Complete our scholarship application, here. The same application is used for both Original and Switcher/Excess Scholarships. Scholarships are not guaranteed and many factors are considered by our committee. We have multiple award cycles per school year; only one application is required per school year. 123 can only make an award if your student is currently attending, or in the enrollment process for the school named on your application. If your child is entering Kindergarten in the Fall, their application will be valid through the next school year.
How Are Scholarships Awarded and What Factors Are Considered?
Our committee consider three factors when making award decisions:
- Financial Circumstances of the Student’s Family (A required factor by state law. It is held in strictest confidence)
- A Narrative Provided by the Parents
- Recommendations Concerning the Student
Every student who has a current application on file and the meets the qualifications of each type of scholarship is considered. If a student does not receive an award, it is simply because there wasn’t enough donation money to go around.
What If My Student Receives an Award But Transfers to Another School?
If the new school is a private school in Arizona, the unused portion follows the student. Otherwise, the remaining scholarship amount would be awarded among other students at their current school.
May a Student Receive Funds From More Than One STO?
Yes, we encourage you to apply for any opportunities available. Our number one goal is for you to be able to afford the private school of your choice for your child.
Apply for scholarship today!