Sen. Meyer's SB 236 creating Education Tax Credits passes the Senate
Senator Kevin Meyer’s SB 236 encourages individual and corporatecontributions to Educational institutions.
Wednesday, April 7, 2010, Juneau, Alaska – Senate Bill 236, legislation granting tax credits to encourage and reward individual and corporation contributions to Alaska’s educational institutions, passed the Alaska State Senate today unanimously. The bill, sponsored by the Senate Education Committee, advances a policy which is already in place and well-accepted in Alaska.
“This legislation facilitates greater cooperation between Alaska’s business and education sectors, and increases the incentive for the business sector to provide greater financial support to Alaska’s institutions of higher learning,” said Senator Kevin Meyer, R-Anchorage, Co-Chair of the Senate Education Committee.
Under current law, tax payers who make cash contributions to an Alaskan educational or vocational institution receive a tax credit of 50 percent for contributions up to $100,000 and 100 percent for contributions between $100,000 and $200,000. The maximum tax credit allowable in any given year is only $150,000.
SB 236 enhances this system so that cash contributions to an Alaskan educational or vocational institution will receive a tax credit of 50 percent for contributions up to $100,000, a 100 percent tax credit for contributions between $100,000 and $300,000 and a 50 percent tax credit for contributions over $300,000, for a maximum allowable credit accrual of $25 million per year.
“Many major employers in Alaska understand that the future success of their business requires a highly skilled workforce,” Senator Meyer commented. “They prefer those skilled workers be Alaskans and are willing to share the cost of educating and training them. Many Alaska businesses are already participating in workforce and economic development; SB 236 will help them do more.SB 236 now moves to the Alaska House of Representatives for further consideration.