Opt In Or Lose Big, Arizona
Originally published by the AZ Free News
Arizona is known as the national gold standard for education opportunity. With a decades long history of tax credit scholarships supporting families and the nation’s first education savings account (ESA) program, Arizona paved the way for other states to make bold education reforms. Senate Bill 1142, now on the governor’s desk, is the next iteration of such reforms.
Arizona faces a choice: opt in to the federal education freedom tax credit (EFTC)—or lose big. Created by the Working Families Tax Cut Act, taxpayers can claim up to $1,700 in dollar-for-dollar federal tax credits for contributions to nonprofit Scholarship Granting Organizations, referred to as school tuition organizations (STOs) in Arizona. From there, STOs provide scholarships for numerous educational resources—including tuition, tutoring, and special education services—all designed to prioritize students.
And at what cost to state budgets? Absolutely none.
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