Tax Provisions

AJCU has worked extensively to maintain a number of tax provisions that have been important to our Jesuit institutions and to higher education throughout the years. By providing tax credits, deductions, and other benefits, primarily to middle class families, most of these provisions have assisted students and parents in offsetting the cost of higher education. Other provisions have benefited our institutions by incentivizing donations and by supporting research and development at our colleges and universities. For this reason, AJCU will continue to support the preservation of the following tax provisions:

Select Provision Described:

IRA Charitable Rollover:

  • Description: The IRA charitable rollover allows individuals age 70 ½ or older to donate up to $100,000 tax-free from their individual retirement accounts (IRAs) to qualifying charitable nonprofits. The IRA charitable rollover is an important program because it incentivizes donors to contribute to Jesuit institutions and to other non-profit organizations
  • Duration: Made permanent by the tax provision in the 2016 Omnibus bill

Charitable Contributions

  • Description: Charitable Contributions  deductions allow individuals and organizations to receive income tax deductions for donations that they have made to qualifying organizations, usually non-profits. This deduction cannot be more than 50% of the individual or organization’s adjusted gross income, and in some instance cannot be more than 20% or 30%. This tax deduction incentivizes donations that are very important to Jesuit institutions.
  • Duration: Currently effective

For more information on charitable contributions view the IRS Publication 526

Research and Development (R&D):

  • Description: The tax deduction for Research and Development (R&D) was designed to encourage investment for innovation and research. For years, this tax credit has not only contributed to the economic growth and rising employment in the country, but it has also supported the research carried out by our Jesuit colleges and universities
  • Duration: Made permanent by the tax provision in the 2016 Omnibus bill