¶¶ÒõÇáÁ¿°æ Education Tax Credit
The ¶¶ÒõÇáÁ¿°æ Education Tax Credit (ETC) program, administered by the Department of Revenue, gives tax credits (50% of the contribution) to third party entities that make charitable donations (of either cash or equipment) for the purpose of education in the state. The program empowers ¶¶ÒõÇáÁ¿°æ to maintain a highly effective partnership between businesses and the ¶¶ÒõÇáÁ¿°æ, directly benefiting ¶¶ÒõÇáÁ¿°æ’s workforce needs and fueling the economy.
In 2024, Governor Mike Dunleavy signed House Bill 148, which increased the combined ETC cap to $3 million and extended the program through Dec. 31, 2028. The $3 million tax cap, according to the Department of Revenue, applies to all donations made on or after June 27, 2024. (Note, the $1 million tax cap applies to donations made prior to the June 27, 2024 signed legislation).
Businesses paying any of the following taxes can receive a 50% credit against their tax obligation during the calendar year a gift is given. Contributions to UA for direct instruction, educational support, facilities, and research are eligible to utilize the ETC. The credit can be applied on the following ¶¶ÒõÇáÁ¿°æ state taxes:
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Benefits of the ETC
The ETC provides the ultimate return on investment. Contributed dollars go towards
education and contributors receive a tax credit for their generosity. The ¶¶ÒõÇáÁ¿°æ
Legislature established the ETC in 1987 to encourage businesses to make charitable
contributions to ¶¶ÒõÇáÁ¿°æ’s educational institutions. It incentivizes targeted investments
in UA student scholarships, research, centers of excellence, facilities, and internships
that address industry demands.
The ETC promotes accessible in-state education and training, which is essential to ¶¶ÒõÇáÁ¿°æ’s workforce and future economy. It strengthens the UA system’s partnerships with important industries such as seafood, mining, banking, tourism, insurance, and energy. As a result, it also provides UA graduates with exciting career opportunities in ¶¶ÒõÇáÁ¿°æ’s job fields.
See the ETC in Action at UA
Several companies have utilized the ETC to make value-stream investments in their
workforce and communities through the University. Those include:
- First National Bank ¶¶ÒõÇáÁ¿°æ
- Hecla Greens Creek Mining Company
- Holland America Group (Holland America Line and Princess Cruises)
- New York Life Insurance
- Trident Seafoods, Inc.
More Information
For additional information about how the ETC may be utilized to benefit UA, please
contact the ¶¶ÒõÇáÁ¿°æ Foundation at 907-786-1111 or email foundation@alaska.edu.
All other ETC questions should be directed to the Department of Revenue or a tax professional.