Tax Credit for Donations To UConn Athletics May Be First in the Nation
/State officials have indicated that as far as they know, it is the only program like it in the nation. The University of Connecticut Division of Athletics recently announced the launch of a groundbreaking State Tax Credit Program designed to support UConn's athletic programs while providing “significant tax benefits” to Connecticut taxpayers.
The newly rolled out initiative – dubbed the UConn State Tax Credit Program - offers Connecticut taxpayers a state tax credit equal to 50% of qualifying payments made in support of UConn Athletics, up to $500,000 per taxpayer per year.
The program carries an aggregate annual cap of $5 million per calendar year and represents a unique opportunity for businesses and individuals to invest in UConn's athletic future while receiving substantial tax benefits, UConn officials explain.
"This innovative program creates a win-win opportunity for our supporters and our athletic programs," said UConn Director of Athletics David Benedict. "As the landscape of collegiate sports continues to evolve and become increasingly competitive, this tax credit program provides our loyal fans, corporate partners and interested businesses with a meaningful way to help UConn continue competing at the highest level while receiving significant financial benefits."
The UConn State Tax Credit can be applied against multiple Connecticut state taxes, according to UConn officials, including individual income tax, corporate business tax and various industry-specific taxes. Key features include:
50% tax credit on qualifying payments
Maximum credit of $500,000 per taxpayer per year
15-year carry-forward provision for unused credits
Three qualifying payment categories with varying minimum thresholds
The program recognizes three categories of eligible payments:
Donations of $5,000 or more to the "Storrs Strong Fund" through UConn's Marketplace website or executed pledge agreements
Licensing & Endorsement Agreement payments of $5,000 or more
Sponsorship Agreement payments of $25,000 or more
The Daily Campus newspaper reported that the program is only valid until $5 million is raised for UConn Athletics, on a first-come, first-served basis to qualifying donors. The donations as part of this program also won’t get contributors any special benefits, like the points for priority seating attached to other fundraising efforts. The contribution can be sent online or pledged through Nov. 14. Once it is received, a written acknowledgement and voucher will be issued to the taxpayer to be filed with their tax documents, the program policy states.
Additional details about the new program can be seen here: https://tax.controller.uconn.edu/uconn-tax-credit-program/ and specific questions can be emailed here: statetaxcredit@uconn.edu
