AL HB576

Establishes an annual income tax credit equal to 50 percent of donations made to approved nonprofit organizations, limited to 50 percent of the donor's tax liability.

Credits available for tax years beginning January 1, 2016, with a first-year cap of $50 million that increases by 25 percent annually if 90 percent of the cap is reached.

Eligible nonprofits must be 501(c)(3) organizations established for public education, expend at least 98 percent of funds on grants, and allocate at least 50 percent of funds to rural school districts.

Grant funds may be used to purchase technology devices, improve infrastructure, strengthen wireless connectivity, or improve instructional practices; grants require a 50 percent matching contribution from the requesting school or organization.

Department of Revenue must certify eligible organizations, establish approval procedures, and submit annual reports to the Governor and legislature detailing program funding, participating districts, and student academic achievement outcomes.