The bill enacts R.S. 47:6302, establishing an income tax credit for donations made by taxpayers to public schools that have received a letter grade of "D" or "F" under the Louisiana School and District Accountability System. The credit is set at 95% of the donation amount and is intended to support various educational initiatives, including the purchase of instructional materials, the establishment of tutorial programs, and the maintenance of school-based health clinics. Public schools must issue a standardized receipt to donors, detailing the donation amount and the school's letter grade, along with a certification of intended use for the funds.

Additionally, the bill imposes a cap of one million dollars on the total amount of credits granted per calendar year, with a first-come, first-serve issuance process. Taxpayers must apply for the credit electronically, providing necessary documentation, including the receipt from the school. The provisions of this act will apply to taxable periods beginning on or after January 1, 2026, and no credits will be available for taxable periods starting on or after January 1, 2028.