This bill enacts a new section, R.S. 47:6302, which establishes 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 applicable for the taxable year in which the donation is made. Donations must be used for specific purposes, including purchasing instructional materials, establishing tutorial programs, and maintaining school-based health clinics. Public schools are required to issue standardized receipts for donations, which must include the donation amount and the school's letter grade.

The bill also sets a cap on the total amount of credits granted at one million dollars per calendar year and outlines a first-come, first-serve process for issuing these credits. Taxpayers must apply for the credit electronically, providing necessary documentation, including the receipt from the school. Notably, no credits will be available for taxable periods beginning on or after January 1, 2028, and the provisions of this act will apply to taxable periods starting January 1, 2026. The act is set to become effective on that same date.