Changes to Alaska’s tax credits can boost Catholic schools

CatholicAnchor.org
A change to Alaska’s education tax credit program could have a big impact on the state’s Catholic schools, according to Alaska Catholic Conference executive director Mary Gore. And private schools are poised to get the word out.

The program, in existence since 2011, provided tax savings to qualifying individuals and companies who donated to Alaska’s public schools and universities. Now, those same benefits have been extended to the state’s private schools.

“It could make a tremendous difference for our school,” said Principal Brian Cleary of St. Mary School, a pre-K-8th grade school in Kodiak which has struggled financially over the years.

“We might even be able to set up an endowment for support in the future,” he said. “We’re very hopeful.”

The tax credit is available to those paying certain categories of taxes to the state of Alaska. These include corporate income tax, mining license tax, fisheries business tax, and fisheries landing tax. A brochure produced by the Alaska Catholic Conference gives a general guide to the benefits of donating.

The benefits to both the school and the taxpayer are significant. A qualifying donor giving a school $300,000 might see the net cost of his donation set at $32,500 after total tax saving.

Janis Hales, an income and excise tax specialist with the state department of revenue, cautions that the tax is “pretty tricky,” and said there is information at the department’s website.

“However, we are also recommending that anyone considering a donation should contact their tax attorney,” she said.

Cleary and the school board at St. Mary’s are working hard to make sure businesses in their community know about the new credit for private schools.

“Our board has met two or three times to discuss it. We’ve produced a letter and a brochure. Obviously, the fishing industry is our big connect here in Kodiak,” Cleary said.

St. Mary’s school board went to the Chamber of Commerce and found the names of 200 individuals or companies operating in Kodiak that might qualify for the credit and sent them the documents. Even if the company is based outside of Alaska, it can benefit if it pays the qualifying Alaskan taxes.

Gore said all the Catholic schools in the Anchorage Archdiocese qualify to benefit from the credit. In Anchorage, those schools are St. Elizabeth Ann Seton, a K-6th grade parish school in South Anchorage, Lumen Christi, a 7-12th grade school based next to St. Benedict Church, and Holy Rosary Academy, an independent K-12th grade Catholic school.

The Archdiocese of Anchorage encompasses two other schools: Our Lady of the Valley, K-8th grade, in Wasilla and Saint Mary’s School in Kodiak.

The Diocese of Juneau has a pre-K-6th grade school, Holy Name, in Ketchikan. And the Diocese of Fairbanks has Immaculate Conception, pre-K-6th grade, and Monroe High School.

Brochures explaining the basics of the program are available at the pastoral centers of the three dioceses, and may also be obtained by contacting the individual schools.

The credit is scheduled to expire in 2018.