The Arizona Credit for Donation of School Site (Form 331) is a nonrefundable income tax credit available to individuals and corporations that donate qualifying real property and improvements located in Arizona to an Arizona school district or charter school. The donated property must be intended for use as a school or as a site for school construction and must meet all statutory requirements to qualify for the credit.
Eligibility Requirements
- Donor must donate real property and any associated improvements located in Arizona.
- The property must be conveyed to an Arizona school district or charter school in fee simple.
- The property must be transferred unencumbered, except as otherwise permitted by law.
- A deed restriction and protective covenant must be placed on the property to ensure that it is used as a school site or for school construction purposes as required by Arizona law.
- The taxpayer must determine the fair market value of the donated property and improvements in accordance with the requirements applicable to the credit.
Applicable Tax Rule
- The credit is a nonrefundable income tax credit authorized under Arizona law for qualifying donations of school sites.
- Individuals claim the credit using Arizona Form 331 and report the credit on the applicable Arizona individual income tax return.
- Corporations claim the credit using Arizona Form 331 and report the credit through the applicable Arizona corporate credit forms.
- Taxpayers must retain supporting documentation related to the donation, valuation, and qualification of the property.
- Any Unused credit may generally be carried forward for up to five consecutive taxable years.
Source:
Form 331: Credit for Donation of School Site (Arizona Department of Revenue)
Disclaimer: Always verify details with the official Federal or State Department of Revenue forms and instructions. For complex situations, consult a CPA or tax attorney.