A tax credit provides a very simple way for us to choose where our tax dollars go.  A tax credit is much more than a tax deduction. Whereas a tax deduction only reduces the amount of your taxable income, a tax credit reduces the amount you owe to the government by the exact amount you give to non-governmental entities




State-Level Charitable Tax Credits

Arizona Charitable Tax Credit Data

“A nonrefundable credit is allowed for voluntary cash contributions to a qualifying charitable organization (QCO). A qualifying charitable organization means a 501(c)(3) that spends at least 50% of its budget on services to Arizona residents who receive TANF benefits or low income residents of this state and their households.”

Pick.Click.Give: Alaska Dividends Program

“If you give…and your neighbor does…and another…it will add up quickly.  With one donation at a time, we can make good things happen all over Alaska. When you make a donation from your PFD through Pick.Click.Give., you can make an impact by sharing just a little with a cause you care about. Strengthen the arts, invest in education, shelter a homeless pet, lend a hand, or even make a wish come true when you give to one of Alaska’s nonprofits.”

Alaska HB 75: Dividends Program Legislation

“Amending certain audit requirements for entities receiving contributions from permanent fund dividends; requiring the three main campuses of the University of Alaska to apply to be included on the contribution list for contributions from permanent fund dividends; relating to notice provided on the electronic dividend application form; relating to administrative costs for administering the program of contributions from permanent fund dividends; relating to a coordination fee for entities that receive contributions from permanent fund dividends; and requiring the university to pay an application fee for each campus separately listed on the contribution list for contributions from permanent fund dividends.”

International Charitable Tax Credits

Slovakia: Redirect 2% of Your Income Tax

Slovaks are able to redirect up to 2 percent of their income to a nonprofit. This website (in Slovak) allows taxpayers to choose where they want their tax dollars to go.

"Redirect 2% of your income tax" - Expat in Slovakia

This website explains the Slovak 2 percent model in English: “I[n] case you didn’t know, you can redirect 2% of your 2012 income tax to a Slovak NGO of your choice (and you can do this until the 30th of April). All you need to do is to ask your employer for potvrdenie o zaplatení dane for 2012 (the proof of tax payment), to fill in a simple form – vyhlásenie 2% z dane –  and to send these two to your local tax office.”

"Lessons from the 'percentage mechanism' in Hungary" - European Center for Non-for-Profit Law

“In Hungary, individual taxpayers – natural persons – may designate one percent of their income taxes paid to a qualifying nonprofit organization and another one percent to a church. In addition to nonprofits, there is also a list of budgetary institutions; while as an alternative to a church, a special budgetary priority objective is named each year.”


"Expanding Choice through Tax Credits: Q&A with Cato's Andrew Coulson"

“Andrew Coulson, director of the Center for Education Freedom at the Cato Institute, believes giving businesses tax credits for sending kids to private school is the most effective way to expand school choice. The regulatory and legal obstacles to charters schools and vouchers, he argues, present too many hassles to work around.”

The Florida Tax Credit Scholarship

“The Florida Tax Credit Scholarship changed Denisha Merriweather’s life. She tells her story in this video.”

The following videos by Step Up for Students also feature Denisha:

Denisha speaking before a hearing on “Expanding Educational Opportunity Through School Choice”:

"Pick Where Your Taxes Go? - Catering Governor or Creating Gaps?"

“Richard French and the RFL panel discuss a new proposal to allow taxpayers in several counties in the NY-Metro area to decide which school districts get their tax money.”