Not that long ago, a wealthy booster of a college sports team could get in trouble for giving large sums of money to student athletes. Now that booster can get a tax credit for it.
The University of Connecticut Division of Athletics said Wednesday it has launched a state tax credit program intended to help boost support for its athletic programs while offering “significant tax benefits” to in-state donors.
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 has 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,” the school said.
The tax credit was included in the $55.8 billion, two-year state budget that was approved during the 2025 legislative session.
“This innovative program creates a win-win opportunity for our supporters and our athletic programs,” said David Benedict, UConn’s director of athletics. “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.”
Benedict said in June that, in the wake of a federal judge approving a settlement agreement in the House vs. NCAA lawsuit earlier this year, UConn intends to share at least $18 million in revenue annually with its student-athletes.
The approved settlement in the name, image and likeness (NIL) lawsuit allows athletic departments to share up to $20.5 million annually with their student-athletes.
State lawmakers also passed a law to allow student athletes to receive NIL compensation.
The UConn State Tax Credit can be applied against multiple Connecticut state taxes, 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; and
- 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; and
- Sponsorship agreement payments of $25,000 or more.
UConn officials said the new tax credit program will help ensure the school’s athletic teams can continue to compete at the highest level as collegiate athletics continues to evolve.
For more information about the UConn State Tax Credit Program, send an email to statetaxcredit@uconn.edu.
