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ÐãÉ«¶ÌÊÓƵ Education Tax Credit

The ÐãÉ«¶ÌÊÓƵ 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 ÐãÉ«¶ÌÊÓƵ to maintain a highly effective partnership between businesses and the University of ÐãÉ«¶ÌÊÓƵ, directly benefiting ÐãÉ«¶ÌÊÓƵ’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 ÐãÉ«¶ÌÊÓƵ state taxes: 

corporate income tax	oil and gas production tax
fisheries business tax	oil and gas property tax
fishery resource landing tax	insurance premium tax
mining license tax	title insurance premium tax

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 ÐãÉ«¶ÌÊÓƵ Legislature established the ETC in 1987 to encourage businesses to make charitable contributions to ÐãÉ«¶ÌÊÓƵ’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 ÐãÉ«¶ÌÊÓƵ’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 ÐãÉ«¶ÌÊÓƵ’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 ÐãÉ«¶ÌÊÓƵ
• 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 University of ÐãÉ«¶ÌÊÓƵ 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.