La. R.S. 47:6302 — Credit for donations to public schools

A.(1) There shall be an income tax credit for donations a taxpayer makes during a
taxable year to public schools that receive a letter grade of "D" or "F" for the most recent year
pursuant to the Louisiana School and District Accountability System. The credit shall be
earned for the taxable year of the donation. In order to qualify for the credit, the donation
shall be made by a taxpayer who is required to file a Louisiana income tax return.
(2) The donation shall be used by the public school for the costs and expenses of any
of the following:
(a) Purchasing of instructional materials and supplies used in classrooms or in tutorial
programs to enhance student learning.
(b) Establishing and maintaining tutorial programs designed to enhance student
academic achievement.
(c) Establishing and maintaining in-school child care programs for student parents.
(d) Establishing and maintaining school-based health clinics.
(e) Meeting any of the requirements prescribed for academically unacceptable schools
prescribed for in Chapter 16 of LAC 28:XI.
(3) The amount of the credit shall be as follows:
(a) If the donation is made to a public school that received a letter grade of "D", "F",
or any variation thereof for the most recent year, pursuant to the Louisiana School and
District Accountability System, the amount of the credit shall be equal to ninety-five percent
of the taxpayer's donation.
(b) No credit shall be issued for a donation to a public school that received a letter
grade of "A", "B", "C", or any variation thereof for the most recent year, pursuant to the
Louisiana School and District Accountability System.
(4) The Department of Revenue shall provide a standardized format for a receipt to
be issued by the public school to the taxpayer. The receipt shall indicate the amount of the
donation to the public school and the letter grade the public school received pursuant to the
Louisiana School and District Accountability System. The receipt shall also include a
certification by the public school that the donation will be used for one of the authorized
purposes provided for in Paragraph (2) of this Subsection.
(5) The governing authority of the public school that has received a donation eligible
for a credit pursuant to this Section shall provide a public report to the Department of
Revenue and the Department of Education that shall be prepared by a certified public
accountant and shall be submitted electronically in a format approved by the Department of
Revenue to the departments no later than the last day of February of each year. The report
shall contain the name and address of the public school, the total number and total dollar
amount of donations received during the previous calendar year, the total amount of
donations made by each taxpayer during the previous calendar year, and the name, address,
and federal employer identification number or last four digits of the social security number
of each taxpayer who donated.
B.(1) The total amount of credits granted pursuant to the provisions of this Section
shall not exceed one million dollars per calendar year.
(2) The issuance of tax credits authorized by this Section shall be on a first-come,
first-served basis. If the total amount of tax credits authorized in a particular calendar year
exceeds the amount of tax credits authorized for that year, the Department of Revenue shall
treat the excess as having been applied for on the first day of the subsequent year.
(3) The Department of Revenue shall treat all requests received on the same business
day as received at the same time. If the aggregate amount of the requests received on a single
business day exceeds the total amount of available tax credits, the department shall issue tax
credits on a pro rata basis.
C. A taxpayer seeking a tax credit pursuant to the provisions of this Section shall
apply for the tax credit by electronically submitting an application to the Department of
Revenue on a form prescribed by the Department of Revenue. The application period shall
begin on January first and conclude on the last day of February of the calendar year following
the calendar year in which the credit is earned. The taxpayer shall submit a copy of the
receipt issued to him by the public school. The taxpayer shall attach all required
documentation to the application.
D. No credits shall be earned pursuant to this Section for taxable periods beginning
on or after January 1, 2028.