The Alaska Education Tax Credit Program provides a tax credit for businesses to make contributions to Alaska accredited nonprofit organizations, such as Alaska EXCEL, Inc. It is a great way to ensure Alaska’s youth are prepared for Alaska jobs.
How much can your company save?
The credit enables companies to reduce certain taxes by giving to education. If a business owes eligible state taxes, it can claim a credit for investment in Alaska EXCEL or other educational institutions.
These taxes include Corporate Income Tax, Fisheries Business Tax, Fishery Resource Landing Tax, Insurance Premium/Title Tax, Mining License Tax, Oil & Gas Production Tax, and Oil & Gas Property Tax.
If a business owes the State of Alaska a tax liability and it makes a contribution to a qualified educational institution it may be eligible for a credit against its state taxes. The credit is a partnership providing mutual benefit for industry, the State of Alaska, and Alaska EXCEL.
How is the education tax credit calculated?
Effective January 1, 2019 through December 31, 2020 – 50% of eligible contributions up to $100,000. 75% of eligible contributions between $100,001 and $300,000. 50% of eligible contributions of $300,001 and over. The tax credit 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. Total credit across all tax types may not exceed $1M per taxpayer, per year.
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.
Please contact us for more information about the Alaska Education Tax Credit.