Valid for companies paying Corporate Income Tax, Insurance Premium Tax/Title Insurance Premium Tax, Mining License Tax, Oil & Gas Property Tax, Oil & Gas Production & Transportation Tax, and Fisheries Business Tax, and/or Fisheries Resource Landing Tax in the State of Alaska.
NEW Alaska Education Tax Credit Benefits beginning January 1, 2011 till January 1, 2021
The legislature expanded the Alaska Higher Education Tax Credit to increase the credit amount for corporations making contributions in support of education. The revised law will allow companies to take up to a $5 million tax credit when they support the University of Alaska.
In addition to receiving the Alaska Education Tax Credit with a donation to the University of Alaska, businesses may also qualify for additional tax savings at the federal level.
State tax credit:
o 50% of contributions up to $100,000
o 100% of contributions $100,001 - $300,000
o 50% of contributions $300,001 - $10,000,000
o Total claimed Alaska Education Tax Credits may not exceed $5,000,000
|Gift Amount||Alaska Educational Tax Credit||Estimated Federal Tax Benefit*||Total Tax Savings (State and Federal)||Net cost of Donation|
*Assumes a federal tax rate of 35%. This calculation is simplified and actual results may vary depending upon the unique circumstances of each taxpayer. Please contact your tax consultant for further information.
Example of application of the Alaska Education Tax Credit to multiple taxes: XYZ Corporation wishes to make a $1 million gift to the University. XYZ Corporation pays State of Alaska Income Taxes and Oil &Gas Production Tax—they could claim a $300,000 credit on State of Alaska Income Tax AND claim $700,000 on Oil & Gas Production Tax. The formula of 50% of contributions up to $100,000; 100% of contributions $100,001- $300,000; and 50% of contributions $300,001 - $10,000,000 would be applied to EACH credit claimed.
BOTTOM LINE – THE NET COST TO THE DONOR TO MAKE A $1M GIFT IS $260,000.
You Win. UA Wins. Alaska wins. Here's why:
Your charitable donation will lessen your tax burden. The tax benefits chart above shows just how substantial the tax savings could be from your gift. Your tax bill could be reduced by up to 80%, depending on your level of giving. ROI.
Gifts can be designated to industry-related programs. You have the option of directing your donations to programs of study at the University that tie directly to your field. You can be as specific as designating student support, faculty support or general program support. It is as your discretion. These programs will in turn produce the workforce that will benefit your company. ROI.
Your support can even be community specific. You can designate your contribution to University of Alaska programs that operate in specific Alaska communities that you wish to support. ROI.
Your giving options are almost unlimited. The University of Alaska can help you choose which programs are most aligned with your corporation or areas of interest.
Beyond the financial benefits you receive, partnering with the University of Alaska brings many other returns on your investment. You will be helping grow in-state Alaska employees through workforce training. There is also the gratification that comes from knowing your generosity is making a difference in Alaska’s future, as well as impacting the lives of Alaskan students and contributing to the success of higher education in the state.
There is a positive residual value in being aligned with the University of Alaska, giving your company an esteemed standing in the community. And as a corporate partner, you will receive invitations to key University events and recognition in a variety of publications. A University of Alaska liaison will be available to help you make the most of your gift and your relationship with the University.
Additionally, we will report back to you on how your gift was used. You could meet scholarship recipients, or take a tour and see the new equipment your gift helped to purchase. The University of Alaska is experienced in working with our corporate partners and will make it a priority to keep you as informed as you wish to be.