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SB 123 Louisiana Senate · 2025 Regular Session

TAX/TAXATION: Authorizes an income tax credit for donations to certain public schools. (1/1/26) (EN -$1,000,000 GF RV See Note)

SB 123 creates an income tax credit for Louisiana taxpayers who donate to public schools rated "D" or "F" in the previous year's accountability system. The credit covers 95% of the donation amount, which schools must use for specific educational needs like classroom materials, tutoring programs, child care, or health clinics. Schools must provide a receipt showing the donation amount and their grade, and the total credit value cannot exceed $10 million annually, issued on a first-come, first-served basis. This policy applies to donations made for the 2025-2026 school year and beyond, starting January 1, 2026.
Issues: ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit (95% of donation) for public school donations, directing private funds to underperforming schools for educational needs while capping annual credit at $10M, advancing public education funding through tax incentives.95% confidence ✓ EducationSupports EducationBill creates tax credit for donations to low-rated schools, directing funds to classroom materials, tutoring, and health services, effectively increasing school funding for educational needs.95% confidence
Bill status signed all 5 stages cleared
Introduction
Apr 2025
Committee Review
Jun 2025
Senate Passage
Jun 2025
House Passage
Jun 2025
Signed into Law
Jun 2025
Introduced Apr 3, 2025 Signed Jun 20, 2025
Maddy AI version diff · 3 comparisons

What changed between versions

SB123 Original → SB123 Act 423 · 5 edits
MODERATE
The bill was expanded from a single-sponsor proposal to a multi-member sponsored act and transitioned from a draft to an enrolled, signed law. The core policy remains an income tax credit for donations to public schools, but the text was reorganized to clarify that credits are only available for schools receiving low grades (D or F) while explicitly excluding high-performing schools (A, B, or C).
Scope change
The bill's scope was broadened by adding co-sponsors and formalizing its status as enacted law. The eligibility criteria were sharpened to strictly limit tax credits to underperforming schools, removing ambiguity about which schools qualify.
SCOPE

Added Representatives Wilford, Carter, Chassion, Fisher, Freiberg, Knox, Lyons, Moore, Taylor, and Wiley as co-sponsors to the bill.

STATUS

Changed the document header from 'ORIGINAL' draft to 'ENROLLED ACT No. 423', indicating it has been approved by the legislature and the Governor.

ELIGIBILITY

Reorganized the text to explicitly state that no credit is allowed for schools with grades A, B, or C, ensuring the benefit is strictly reserved for schools with grades D or F.

REQUIREMENT

Added new requirements for schools to submit an annual public report to the Department of Revenue and Education, certified by a public accountant, detailing donation amounts and taxpayer information.

TIMELINE

Updated the effective date for the law to January 1, 2026, and set the expiration of the tax credit program to December 31, 2027 (ending credits for taxable periods starting on or after January 1, 2028).

Floor votes · Senate May 13, 2025 · House Jun 9, 2025

How they voted

36–0
Passed · 1 other
Total votes 37
May 13, 2025
D Democratic11
11 Yea
100% Yea
R Republican26
25 Yea 1
96% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
24
Key actions
7
Committee
8
Amendments
1
Jun 10, 2025
Upper · Passed
Amendments proposed by the House read and concurred in by a vote of 38 yeas and 0 nays.
upper
Jun 9, 2025
Lower · Passed
Read third time by title, roll called on final passage, yeas 79, nays 16. Finally passed, ordered to the Senate.
lower
Jun 8, 2025
Introduced
Reported without Legislative Bureau amendments.
lower
Jun 8, 2025
Lower · Passed
Reported with amendments (14-0). Referred to the Legislative Bureau.
lower
Jun 3, 2025
Committee
Read by title, recommitted to the Committee on Appropriations.
lower
Jun 2, 2025
Lower · Passed
Reported favorably (16-0). To be recommitted to the Committee on Appropriations.
lower
May 14, 2025
Committee
Read by title, under the rules, referred to the Committee on Ways and Means.
lower
May 13, 2025
Upper · Passed
Read by title, passed by a vote of 38 yeas and 0 nays, and sent to the House. Motion to reconsider tabled.
upper
May 8, 2025
Upper · Passed
Rules suspended. Recalled from Committee.
upper
Apr 29, 2025
Committee
Read by title. Ordered engrossed and recommitted to the Committee on Finance.
upper
Apr 28, 2025
Upper · Passed
Reported favorably.
upper
Apr 14, 2025
Committee
Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Revenue and Fiscal Affairs.
upper
1 primary · 9 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Katrina Jackson-Andrews
Katrina Jackson-Andrews
DDemocratic
LA
34
Co
Photo of Adrian Fisher
Adrian Fisher
DDemocratic
LA
16
Co
Photo of Alonzo Knox
Alonzo Knox
DDemocratic
LA
93
Co
Photo of Barbara Freiberg
Barbara Freiberg
RRepublican
LA
70
Co
Photo of Jeff Wiley
Jeff Wiley
RRepublican
LA
81
Co
Photo of Pat Moore
Pat Moore
DDemocratic
LA
17
Co
Photo of Rodney Lyons
Rodney Lyons
DDemocratic
LA
87
Co
Photo of Sylvia Taylor
Sylvia Taylor
DDemocratic
LA
57
Co
Photo of Tehmi Chassion
Tehmi Chassion
DDemocratic
LA
44
Co
Photo of Wilford Carter
Wilford Carter
DDemocratic
LA
34