2010 Annual Report University of Alaska Foundation Promise

Impacts Today & Tomorrow
Education Tax Credit
Undergoes Key Changes
Corporate and foundation giving accounts for over 80 percent of the private funds received
annually by the University of Alaska. The Alaska Legislature, recognizing the importance of
corporate donations, expanded the Alaska Higher Education Tax Credit. The revised law, in
effect from January 1, 2011 to December 31, 2013, allows companies to take up to a $5 million tax
credit for contributions in support of education.
The Alaska Higher Education Tax Credit can be claimed by a company paying any of the following
state taxes: income tax, insurance premium tax/title insurance premium tax, mining license tax, oil and
gas property tax, oil and gas production tax and fishery business tax/fisheries landing tax. The new
credit will allow companies to claim up to 50 percent of contributions up to $100,000; 100 percent of
contributions $100,000 - $300,000; and 50 percent of contributions $300,000 - $10 million. The total
claimed through this tax credit may not exceed $5 million.
*The estimated federal tax savings for the charitable contribution is calculated using an assumed rate of 35 percent. The
estimated federal tax savings is calculated using the net cost of the contribution and applying the assumed rate.
The State of Alaska Department of Revenue is finalizing the regulations on the changes to the
Alaska Education Tax Credit. For specific tax advice, please consult your accountant, attorney or the
Department of Revenue.
For questions about making a gift to UA, please contact Jennifer Harrington at (907)786-1146 or email
tax.credit@alaska.edu.
UNIVERSITY OF ALASKA FOUNDATION FY10 ANNUAL REPORT 25