HB576 Alabama 2015 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2015

Title

Tax credits, for businesses and individuals who donate to schools for certain equipment

Summary

HB576 would create a Digital Learning Tax Credit program that encourages donations to nonprofits funding school technology grants, offering donors a tax credit of up to 50% of the donation and up to 50% of their tax liability.

What This Bill Does

It authorizes a tax credit equal to 50% of the donation, up to 50% of the taxpayer's liability, for individuals or businesses that donate to eligible nonprofits that grant funds to schools for digital learning through technology. Eligible nonprofits must meet criteria (501(c)(3), support public education, grant to multiple districts, and have a record of statewide fund administration) and must spend 98% of funds on sub-grants, with at least 50% of funds going to rural districts; grant requests require a 50% cash match. Grants may be used for technology devices, infrastructure, wireless connectivity, or improving instructional practices with technology. The Department of Revenue would certify eligible nonprofits, adopt rules, and manage a Digital Learning Tax Credit Account funded by the Education Trust Fund to distribute credits to qualifying nonprofits. Schools and districts would report on fund usage and impact, and the program has an annual cap with carryforward options and potential adjustments if the credits are heavily used.

Who It Affects

• Businesses and individuals who donate to eligible nonprofits: can claim a tax credit equal to 50% of their donation, up to 50% of their tax liability.
• Eligible nonprofit organizations wishing to participate: must meet criteria (501(c)(3), support public education, operate statewide, grant funds to multiple schools, and administer funds) and must expend 98% of funds on sub-grants with at least 50% to rural districts.
• School districts and students: benefit from grants used for technology devices, infrastructure, wireless connectivity, and improved technology-driven instruction, with districts required to report on how funds are used and their impact on student achievement.

Key Provisions

• A tax credit equal to 50% of the donation, up to 50% of the donor's tax liability, for donations to eligible nonprofits that fund digital learning grants for schools.
• Nonprofit eligibility criteria: 501(c)(3) status, support public education, ability to grant to multiple districts, proven statewide fund administration, and capacity to report fund usage to the Department of Revenue.
• Grant use rules: funds may be used to purchase technology devices, improve infrastructure, strengthen wireless connectivity, or improve instructional practices with technology; grant requests require a 50% cash match from the requesting organization.
• Expenditure and rural allocation: participating nonprofits must spend at least 98% of funds on sub-grants and allocate at least 50% of funds to rural districts.
• Department of Revenue roles: certify eligible nonprofits, adopt rules for implementation, and administer the Digital Learning Tax Credit Account financed by Education Trust Fund revenues.
• Credit administration: cap of $50 million in credits per year (with carryforward for 3 years), procedures for claiming on a first-come basis, priority for maintaining or increasing future credits, and annual reporting requirements to the Governor and Legislature.
• Reporting and accountability: school districts must annually report fund usage and return on investment related to student achievement and technology; DoR aggregates reports and publishes an annual statewide summary.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tax Credits