Alaska Education Tax Credit

Changes are coming to the Alaska Education Tax Credit in 2019!

The Alaska Education Tax Credit is a program that allows businesses who pay certain State of Alaska taxes to claim a credit for charitable gifts made in support of education in Alaska.  If a business owes eligible State taxes, it may be able to claim a credit for gifts made to the University or other educational institutions, possibly reducing its overall tax bill.

Eligible taxes: 

  • Corporate Income Tax
  • Fisheries Business Tax
  • Fishery Resource Landing Tax
  • Insurance Premium/Title Tax
  • Mining License Tax
  • Oil and Gas Production Tax
  • Oil and Gas Property Tax


Download ETC Flyer
 

Changes to the current tax credit were adopted in the 2018 legislative session. 

Below is a summary of the current tax credit and upcoming changes:

Current Tax Credit – effective through December 31, 2018: 

The current tax credit allows for the following structure when charitable donations are made to an educational institution: 

  • 50% of eligible contributions up to $100,000
  • 100% of eligible contributions between $100,001 - $300,000
  • 50% of eligible contributions on amounts more than $300,000
  • Total credit across all tax types may not exceed $5M per taxpayer, per year  


Tax Credit - Effective January 1, 2019 through December 31, 2020 

Changes noted in red:

  • 50% of eligible contributions up to $100,000
  • 75% of eligible contributions between $100,001 - $300,000
  • 50% of eligible contributions between $300,001 - $1M
  • Total credit across all tax types may not exceed $1M per taxpayer, per year

**Allows in-kind donations of eligible equipment. Equipment contribution value will be determined by an appraisal consistent with regulations to be adopted by the Alaska Department of Revenue.  

**Non-profit, public or private eligible recipients include UA and other Alaska two-year or four-year colleges accredited by a national or regional accreditation association. 

Effective January 1, 2021 through December 31, 2024: 

  • 50% of all eligible contributions
  • Total credit across all tax types may not exceed $1M per taxpayer, per year 

Effective January 1, 2025:

  • The Alaska Education Tax Credit expires unless additional legislation is passed.

 Making a charitable gift to UA using the Alaska Educational Tax credit is a win-win for all:

  • UA programs and students benefit from corporate support and because of the tax savings, the out of pocket cost to companies could be significantly reduced.
  • A gift to the University can be directed to programs or scholarships of your choice, benefitting Alaska industry, companies and future workforce. With three institutions (UAA, UAF, and UAS) and nearly 33,000 full and part-time students studying among 500 unique degree, certificate or endorsement programs statewide, there are many areas to choose from.
  • Companies who give to UA receive the gratification that comes from knowing their generosity is making a difference in Alaska’s future, impacting the lives of Alaskan students and contributing to the success of higher education in the state.

For more information about how you can make an impact at UA, please contact the UA Foundation at 907.786.1111. 

This page does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations.

Please also refer to the Alaska Department of Revenue Webpage: http://dor.alaska.gov/EducationTaxCredit.aspx

 

 

 

 
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