SLS 25RS-408 ORIGINAL
2025 Regular Session
SENATE BILL NO. 123
BY SENATOR JACKSON-ANDREW S
TAX/TAXATION. Authorizes an income tax credit for donations to certain public schools.
(1/1/26)
1 AN ACT
2 To enact R.S. 47:6302, relative to income tax credits for donations to public schools; to
3 authorize a credit for donations to certain public schools; to provide for an amount
4 of the credit; to provide for the use of donations by certain schools; to provide for a
5 receipt issued by certain public schools for the donation; to provide for the granting
6 of the credit; to provide for certain requirements and limitations; to provide an
7 annual credit cap for the program; to provide for applicability; to provide for an
8 effective date; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:6302 is hereby enacted to read as follows:
11 ยง6302. Credit for donations to public schools
12 A.(1) There shall be an income tax credit for donations a taxpayer makes
13 during a taxable year to public schools that receive a letter grade of "D" or "F"
14 for the most recent year pursuant to the Louisiana School and District
15 Accountability System. In order to qualify for the credit, the donation shall be
16 made by a taxpayer who is required to file a Louisiana income tax return.
17 (2) The donation shall be used by the public school for the costs and
Page 1 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 123
SLS 25RS-408 ORIGINAL
1 expenses of any of the following:
2 (a) Purchasing of instructional materials and supplies used in classrooms
3 or in tutorial programs to enhance student learning.
4 (b) Establishing and maintaining tutorial programs designed to enhance
5 student academic achievement.
6 (c) Establishing and maintaining in-school child care programs for
7 student parents.
8 (d) Establishing and maintaining school-based health clinics.
9 (e) Meeting any of the requirements prescribed for academically
10 unacceptable schools prescribed for in Chapter 16 of LAC 28:XI.
11 (3) The amount of the credit shall be as follows:
12 (a) If the donation is made to a public school that received a letter grade
13 of "D", "F", or any variation thereof for the most recent year, pursuant to the
14 Louisiana School and District Accountability System, the amount of the credit
15 shall be equal to ninety-five percent of the taxpayer's donation.
16 (b) No credit shall be issued for a donation to a public school that
17 received a letter grade of "A", "B", "C", or any variation thereof for the most
18 recent year, pursuant to the Louisiana School and District Accountability
19 System.
20 (4) The Department of Revenue shall provide a standardized format for
21 a receipt to be issued by the public school to the taxpayer. The receipt shall
22 indicate the amount of the donation to the public school and the letter grade the
23 public school received pursuant to the Louisiana School and District
24 Accountability System. The receipt shall also include a certification by the
25 public school that the donation will be used for one of the authorized purposes
26 provided for in Paragraph (2) of this Subsection. The taxpayer shall retain a
27 copy of the receipt that the Department of Revenue may require for the
28 taxpayer to claim the credit authorized by this Section.
29 (5) The governing authority of the public school that has received a
Page 2 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 123
SLS 25RS-408 ORIGINAL
1 donation eligible for a credit pursuant to this Section shall provide a public
2 report to the Department of Revenue and the Department of Education that
3 shall be prepared by a certified public accountant and shall be submitted
4 electronically in a format approved by the Department of Revenue to the
5 departments no later than the last day of February of each year. The report
6 shall contain the name and address of the public school, the total number and
7 total dollar amount of donations received during the previous calendar year, the
8 total amount of donations made by each taxpayer during the previous calendar
9 year, and the name, address, and federal employer identification number or last
10 four digits of the social security number of each taxpayer who donated.
11 B. The total amount of credits granted pursuant to the provisions of this
12 Section shall not exceed ten million dollars per calendar year.
13 C. The Department of Revenue shall grant credits on a first-come, first-
14 serve basis until the maximum amount of credits has been issued starting on
15 January first for the income tax year ending prior to that date. All credit
16 requests received on the same day shall be treated as received at the same time,
17 and if the aggregate amount of credit requests received on a single business day
18 exceeds the total amount of available credits, credits shall be granted on a pro
19 rata basis.
20 D. No credits shall be granted pursuant to this Section for taxable
21 periods beginning on or after January 1, 2028.
22 Section 2. The provisions of this Act shall become effective on January 1, 2026, and
23 shall be applicable to donations made to a public school for the 2025-2026 school year and
24 thereafter.
Page 3 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 123
SLS 25RS-408 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Senate Legislative Services.
The keyword, summary, and digest do not constitute part of the law or proof
or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
DIGEST
SB 123 Original 2025 Regular Session Jackson-Andrews
Proposed law authorizes a credit of 95% of donations a taxpayer makes during a taxable year
to public schools which receive a letter grade of "D" or "F" for the most recent year,
pursuant to the Louisiana School and District Accountability System. In order to qualify for
the credit, the donation must be made by a taxpayer who is required to file a Louisiana
income tax return.
Proposed law requires that donations be used by the public school for the costs and expenses
of any of the following:
(1)Purchasing instructional materials and supplies used in classrooms or in tutorial
programs to enhance student learning.
(2)Establishing and maintaining tutorial programs designed to enhance student
academic achievement.
(3)Establishing and maintaining in-school child care programs for student parents.
(4)Establishing and maintaining school-based health clinics.
(5)Meeting any of the requirements prescribed for academically unacceptable schools
prescribed in present law.
Proposed law requires the Department of Revenue (DOR) to provide the format for a receipt
issued by the public school to the taxpayer indicating the amount of the donation and the
letter grade of the public school that received the donation. Further requires the receipt to
include certification from the public school that the donation will be used for one of the
authorized purposes provided for in proposed law. The taxpayer may be required to provide
a copy of the receipt when claiming the credit.
Proposed law requires the governing authority of the public school receiving a donation
eligible for the credit to provide a public report to DOR and the Department of Education
prepared by a CPA and submitted no later than the last day of February of each year. Further
requires the report be submitted in an electronic format approved by DOR and requires the
report to include:
(1)The name and address of the public school receiving the donation.
(2)The total number and total dollar amount of donations received during the previous
calendar year.
(3)Total amount of donations made by each taxpayer during the previous calendar year.
(4)The name, address, and the federal employer identification number or the last four
digits of the social security number of each taxpayer who donates.
Proposed law limits the total amount of credits granted pursuant to proposed law to
$10,000,000 per calendar year. Requires DOR to approve credits on a first-come, first-serve
basis until the maximum amount of credits has been granted.
Page 4 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 123
SLS 25RS-408 ORIGINAL
Proposed law provides that no credits shall be granted pursuant to this program for taxable
periods beginning on or after January 1, 2028.
Effective January 1, 2026, and applicable to donations made to a public school for the
2025-2026 school year and thereafter.
(Adds R.S. 47:6302)
Page 5 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.