HB577 Summary

• Creates an annual tax credit of up to 50 percent of donations made to eligible nonprofit organizations that provide digital learning grants to schools, capped at 50 percent of the taxpayer's tax liability.

• Establishes a $50 million initial cap on total credits for the first tax year, with the cap increasing by 25 percent annually if credits reach 90 percent of the cap.

• Requires eligible nonprofit organizations to be 501(c)(3) entities with an established record of administering funds statewide, expend at least 98 percent of funds on sub-grants, and allocate at least 50 percent of funds to rural districts.

• Permits schools to use grants for technology device purchases, infrastructure improvements, wireless connectivity upgrades, or instructional technology practices, with schools required to provide a 50 percent match.

• Directs the Department of Revenue to certify eligible organizations, administer the program on a first-come basis, and submit annual reports to state leadership on fund usage and student academic outcomes by October 1st.