By DAVID BOYLE
Many parents in Alaska’s public schools have removed their children due to the shutting down of the schools, masking of the students, and the teaching of Critical Race Theory and other Marxist ideals. Parents have sacrificed jobs and finances to either homeschool their children or send them to a private school.
These parents could use some help in paying for their child’s education. Fortunately, there is help in the form of a State of Alaska Education Tax Credit program.
Most parents don’t know about this great way to finance their child’s education. But Alaska’s Education Tax Credit program has been in existence since 1987. It was expanded in 2014 to include private nonprofit elementary and secondary Alaska schools.
Unfortunately, it has been below the radar of most families.
The tax credits are also available for cash contributions for STEM programs by a nonprofit agency and certain qualified childhood early learning programs.
If a company pays certain taxes to the State of Alaska, it may be able to claim an Education Tax Credit. If you work for a company that pays taxes (corporate income tax, fisheries landing tax, mining license tax, etc.) your company may qualify.
This tax credit can also be used to support Alaska universities and accredited nonprofit Alaska two/four-year colleges. It covers the entire range of education from kindergarten through college.
Here’s how St. Mary’s School in Kodiak implemented the tax credit program: It went to the local Chamber of Commerce and got the names of 200 companies/persons that could qualify for the credit. It sent these companies information regarding the program. Then it worked with these companies to get them to participate.
The program was set to end in 2018 but the Legislature extended it to Dec. 31, 2024. There was bipartisan, almost unanimous, support for this extension.
In 2019 the credit was changed to allow for equipment contributions as well as cash.
The credit has been reduced as of January 2021. It is set at 50% of all contributions and a business can claim up to $1 million in education credits annually. For example, if a company contributes $100,000 it can offset its corporate taxes by $50,000. A win for the company and for education.
From 2018-2020 the credits totaled nearly $17 million. This chart shows the calendar year 2020 credits (taxes saved by the contributors) and the various beneficiaries. The University of Alaska benefited the most.
The Education Tax Credit program is an excellent way to help those parents who want the best education for their children. Corporations win by reducing their taxes and improving the education of the citizenry. Parents win by getting help to fund their child’s education. And the State of Alaska wins by improving educational options for students.
For more information on the Education Tax Credit program, go to http://tax.alaska.gov/programs/programs/credits/index.aspx for a description of the program.
Click here for a copy of the form.
David Boyle writes about education for Must Read Alaska.
