Adopt-a-school Act of 2025

TWENTIETH CONGRESS OF THE ) First Regior SESH LIPPINES First Regular Session 25 JUL -3 ?5:11 SENATE S. No. 129 Introduced by Senator Paolo Benigno "Bam " A. Aquino IV AN ACT FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8525, OTHERWISE KNOWN AS THE "ADOPT-A-SCHOOL ACT OF 1998" EXPLANATORY NOTE The Adopt-A-School Act of 1998 (RA 8525) was enacted to promote public- private partnerships in education, allowing private entities to support public schools and receive tax incentives in return. While the law was forward-looking for its time, today's data show it no longer fully responds to current challenges. One critical finding from the Second Congressional Commission on Education (EDCOM 2) is that since 1996, no private organization has successfully utilized the tax incentives under the law. Between 2018 and 2025, DepEd issued only 476 tax endorsements, and none translated into actual tax deductions or exemptions with the Bureau of Internal Revenue (BIR). Meanwhile, the basic needs of our public schools remain unmet. For instance, as of early 2025, DepEd estimates a classroom shortage of over 165,000, with half a million students coping with overcrowding through class shifts. Roughly 1,500 last- mile schools have no electricity and about 1,000 still lack functional toilets. Moreover, the lack of reliable digital infrastructure — only 1.8% of public schools have free Wi- Fi, and many government-provided computers remain outdated or undelivered - limits online learning and technology adoption in classrooms. This bill updates RA 8525 to match current needs and encourage meaningful private sector contribution. Under the proposal, private donors can support a wider range of educational programs, including early childhood care, ALS, TVET, and state universities, by funding infrastructure, digital devices, teacher training, psychosocial support, and nutrition and scholarship programs. Tax incentives have been restructured to include clear and enhanced deductions, payroll tax credits for employing senior high school graduates, and exemptions for imported donations, all aligned with current Revenue Regulations to reduce administrative barriers.

To streamline participation, the bill establishes an Adopt-A-School One-Stop Shop. This serves as an online portal that consolidates all processes related to application, endorsement, coordination, and reporting among participating agencies, thus speeding up approvals and implementation. By addressing administrative bottlenecks, clarifying incentives, and recognizing the diverse needs of modern education, particularly in underserved and last-mile communities, this measure seeks to unlock private sector potential to fill gaps the government alone cannot close. It strengthens collaboration in education infrastructure, digital transformation, teacher capacity building, and student welfare, ensuring that schools across the nation can provide a safe, effective, and inclusive learning environment. Education is a shared responsibility. With this timely update to the Adopt-A- Schoot Law, we make it possible for every Filipino to contribute directly to better schools, more empowered teachers, and greater opportunities for our children. In view of the foregoing, the passage of this bill is earnestly sought. Bam Aquin

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session JUL -3 76:11 SENATE S. No. 129 Introduced by Senator Paolo Benigno "Bam" A. Aquino IV AN ACT FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8525, OTHERWISE KNOWN AS THE "ADOPT-A-SCHOOL ACT OF 1998" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. SECTION 1. Section 1 of Republic Act No. 8525 is hereby amended

as follows: "Section 1. Short Title. - This Act shall be known and cited as the ["Adopt-a-School 4 Act of 1998".] "ADOPT-A-SCHOOL ACT OF 2025".

Sec. 2. Section 2 of Republic Act No. 8525 is hereby amended as follows:

"Section 2. Declaration of policy. - It is the policy of the State to provide quality and relevant education to the Filipino youth and to encourage private initiative to support public education. Towards this end, the State shall institute programs to [encourage] INCENTIVIZE THE private [companies and enterprises] SECTOR to [help] ASSIST in the DEVELOPMENT, upgrading, and modernization of THE COUNTRY'S public [schools] EDUCATION SYSTEM [in the country, particularly those in poverty- stricken provinces.] AND ESTABLISH PROPER LINKAGES BETWEEN EDUCATIONAL INSTITUTIONS AND INDUSTRIES, INCLUDING THE

1 TRAINING AND EMPLOYMENT OF SENIOR HIGH SCHOOL (SHS) 2 GRADUATES."

Sec. 3. Section 3 of Republic Act No. 8525 is hereby amended as follows:

"Sec. 3. Adopt-a-School Program. - There is hereby established the "Adopt-a-School Program" which will allow private INDIVIDUALS OR entities, WHETHER LOCAL 6 OR FOREIGN, OF GOOD STANDING to assist [a] public [school] EDUCATIONAL 7 INSTITUTIONS, whether EARLY CHILDHOOD, elementary, secondary, 8 TECHNICAL-VOCATIONAL EDUCATION AND TRAINING, ALTERNATIVE LEARNING SYSTEM (ALS), or tertiary, preferably located in [any of the twenty (20) poorest provinces identified by the Presidential Council for Countryside Development or any other government agency tasked with identifying the poorest provinces] THE 4th, 5th, AND 6th CLASS PROVINCES, CITIES, AND MUNICIPALITIES AS DETERMINED BY THE DEPARTMENT OF FINANCE (DOF) AND OTHER LOCAL GOVERNMENT UNITS (LGUS) EXPERIENCING SEVERE SHORTAGES, INSUFFICIENT BUDGET OR HAVING NUMEROUS POOR BUT HIGH PERFORMING LEARNERS in, but not limited to, the following areas: TRAINING, DEVELOPMENT AND FURTHER EDUCATION OF SCHOOL HEADS, TEACHERS, INCLUDING DAYCARE AND CHILD DEVELOPMENT WORKERS, TVET TRAINERS, FACULTY AND LEARNERS; ASSESSMENTS IN PURSUIT OF RELEVANT WORK-RELATED CERTIFICATIONS AND CREDENTIALS; SCHOLARSHIPS FOR TEACHERS; REAL ESTATE PROPERTY [staff and faculty development for training and further education]; construction of SCHOOL facilities SUCH AS LIBRARIES AND LABORATORIES AND THOSE RELATED TO POWER, WATER, AND SANITATION; [upgrading] UPGRADE AND REPAIR of existing facilities; provision of books, publications, SCHOOL SUPPLIES, and other instructional materials SUCH AS ELECTRONIC BOOKS (E-BOOKS), COMPUTERS, FURNITURE, EDUCATIONAL FILMS AND AUDIO-VISUAL MATERIALS; TECHNICAL VOCATIONAL LIVELIHOOD (TVL) TOOLS AND 29 EQUIPMENT; HEALTH AND NUTRITION PACKAGES; ASSISTIVE LEARNING

1 DEVICES AND EQUIPMENT FOR LEARNERS WITH SPECIAL NEEDS; and 2 modernization of instructional technologies. 3 A Memorandum of Agreement (MOA) specifying the details of the adoption shall be entered into between the adopting INDIVIDUAL OR entity and the head of the [school] EDUCATIONAL INSTITUTION concerned: Provided, That such MOA shall be subject to review and approval of the [Superintendent of Schools of the province 7 or district] concerned REGIONAL, PROVINCIAL, OR FIELD OFFICE OF THE EDUCATIONAL INSTITUTION: Provided, further, That the agreement shall last for at least two (2) years with the possibility of extension: Provided, finally, That such period may be shortened only in cases where the adopting INDIVIDUAL OR entity is dissolved before the end of such period unless otherwise earlier terminated in accordance with [the succeeding section] THIS ACT."

Sec. 4. Insert a new Section under Republic Act No. 8525 as follows, and

renumber the succeeding sections accordingly: "SEC. 4. CREATION AND ESTABLISHMENT OF AN ADOPT-A-SCHOOL ONE- STOP SHOP. - THE DEPARTMENT OF EDUCATION (DEPED), COMMISSION ON HIGHER EDUCATION (CHED), AND TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY (TESDA), IN COORDINATION WITH THE DOF, BUREAU OF INTERNAL REVENUE (BIR), THE BUREAU OF CUSTOMS (BOC), AND THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT), SHALL ESTABLISH AND MAINTAIN AN ADOPT-A- SCHOOL ONE-STOP SHOP AND AN ONLINE PORTAL TO ADDRESS QUERIES AND CONCERNS FROM PRIVATE INDIVIDUALS AND ENTITIES INTERESTED IN THE PROGRAM, TO RECEIVE AND PROCESS APPLICATIONS JOINTLY WITH THE BIR AND THE BOC."

Sec. 5. Section 4 of Republic Act No. 8525 is hereby amended as follows:

1 "Section [4] 5. Periodic Review. - A review of the adoption shall be undertaken by the 2 [local school board of the province or city where the school] CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE WHERE THE PARTICIPATING 4 SCHOOL is located. The standards and guidelines for the review shall be formulated by the ADOPT-A-SCHOOL Coordinating Council created under Sec. [7] 8 hereof. The 6 results of the review shall be taken into consideration in the assessment of the application for tax credits by the adopting INDIVIDUAL OR entity. The [school 8 board] CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE may, after an appropriate review, recommend to the ADOPT-A-SCHOOL Coordinating Council the 10 termination of the adoption. The adopting INDIVIDUAL OR entity may appeal the assessment to the ADOPT-A-SCHOOL Coordinating Council whose decision shall be final and unappealable."

Sec. 6. Sections 5 and 6 of Republic Act No. 8525 are hereby repealed and

replaced with a new Section, as follows: 15 "SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR ENTITIES. - 16 PROVISIONS OF EXISTING LAWS TO THE CONTRARY NOTWITHSTANDING, 17 ADOPTING INDIVIDUALS OR ENTITIES SHALL ENJOY THE FOLLOWING 18 INCENTIVES: a) ADDITIONAL DEDUCTION FOR EXPENSES INCURRED FOR THE ADOPTION - EXPENSES INCURRED BY THE ADOPTING INDIVIDUALS OR ENTITIES FOR THE "ADOPT-A-SCHOOL PROGRAM" SHALL BE ALLOWED AN ADDITIONAL DEDUCTION FROM THE GROSS INCOME EQUIVALENT TO 23 FIFTY PERCENT (50%) OF SUCH EXPENSES. 24 VALUATION OF ASSISTANCE OTHER THAN MONEY SHALL BE BASED ON THE ACQUISITION COST OF THE GOODS, SERVICES AND REAL PROPERTY. SUCH VALUATION SHALL TAKE INTO CONSIDERATION THE DEPRECIATED VALUE OF THE GOODS AND REAL PROPERTY, IN CASE SAID GOODS AND REAL PROPERTY HAVE ALREADY BEEN USED.

b) ONE-TIME ADDITIONAL DEDUCTION FOR HIRING OF PUBLIC SENIOR 2 HIGH SCHOOL (SHS) GRADUATES - ADOPTING INDIVIDUALS OR ENTITIES 3 WHO HIRE SENIOR HIGH SCHOOL (SHS) GRADUATES FROM THEIR 4 PARTNER PUBLIC INSTITUTION SHALL ENJOY AN ADDITIONAL DEDUCTION EQUIVALENT TO TWENTY PERCENT (20%) OF THE SALARIES, WAGES, AND BENEFITS PAID TO THE EMPLOYED SHS GRADUATE: PROVIDED, THAT THE SHS GRADUATE IS REGULARLY EMPLOYED FOR AT 8 LEAST ONE YEAR. 9 C) ADDITIONAL INCENTIVES - IN ACCORDANCE WITH EXISTING LAWS 10 AND SUBJECT TO THE IMPLEMENTING RULES AND REGULATIONS, THE ADOPTING INDIVIDUAL OR ENTITY SHALL BE ENTITLED TO HAVE ITS NAME EMBLAZONED BENEATH THE NAME OF THE SCHOOL AFTER WORDS INDICATING THAT THE SCHOOL IS UNDER THE "ADOPT-A-SCHOOL PROGRAM."

Sec. 7. Insert a new Section under Republic Act No. 8525 as follows, and

renumber the succeeding sections accordingly: "SEC. 7. EXEMPTION FROM IMPORT DUTIES, TAXES AND OTHER FEES. - THE DONATED GOODS, REAL PROPERTY, AND SERVICES BY AN ADOPTING INDIVIDUAL OR ENTITY SHALL BE EXEMPT FROM CUSTOMS DUTIES, VALUE-ADDED TAX, EXCISE TAX, AND DONOR'S TAX: PROVIDED, THAT THE DONATIONS SHALL NOT BE RESOLD OR TRANSFERRED FOR MATERIAL CONSIDERATION."

Sec. 8. Section 7 of Republic Act No. 8525 is hereby amended as follows:

"Section [7] 8. ADOPT-A-SCHOOL Coordinating Council. - AN ADOPT-A-SCHOOL Coordinating Council, hereinafter referred to as the Council, is hereby created to coordinate and monitor the implementation of this Act. The Council shall be composed of the Secretary of [the Department of Education, Culture and Sports (DECS)] DEPED, as chairperson; the Chairman of [the Commission on Higher Education (CHED)] CHED

and the Director-General of [the Technical Education and Skills Development Authority 2 (TESDA)] TESDA, as co-chairpersons; THE SECRETARY OF THE DEPARTMENT OF TRADE AND INDUSTRY (DTI); THE SECRETARY OF THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE); THE COMMISSIONER OF THE BIR and [the chairperson of the Presidential Council for Countryside Development (PCCD), and] a representative, WHO SHALL HAVE A TERM OF THREE (3) YEARS AND MAY BE REAPPOINTED FOR ANOTHER THREE (3) YEARS, from a [national federation of chambers of commerce and industry] REPUTABLE BUSINESS GROUP 9 to be appointed by the President of the Philippines, as members." 10 THE SECRETARIES OF DEPED, DTI, AND DOLE, THE CHAIRMAN OF CHED, 11 THE DIRECTOR-GENERAL OF TESDA, AND THE COMMISSIONER OF BIR MAY DESIGNATE THEIR RESPECTIVE ALTERNATES WITH RANKS NOT LOWER THAN ASSISTANT SECRETARY OR ITS EQUIVALENT. ALL ALTERNATES SHALL BE AUTHORIZED TO DECIDE FOR OR ON BEHALF OF 15 THEIR RESPECTIVE PRINCIPALS. 16 The Council shall meet once every three (3) months. The chairpersons and members shall not receive compensation but shall be entitled to reimbursements for reasonable expenses related to the Council's activities. The DEPED [DECS], CHED, [and] TESDA, DTI, DOLE through a mutual agreement, AND IN COORDINATION WITH DBM, shall each make provisions for the secretariat of the Council. 23 THE COUNCIL SHALL COORDINATE WITH NATIONAL GOVERNMENT AGENCIES (NGAS) AND EXISTING COUNCILS RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS OF THIS ACT."

Sec. 9. Insert a new Section under Republic Act No. 8525 as follows, and

renumber the succeeding sections accordingly:

1 "SEC. 9. DETERMINATION OF EDUCATION SECTOR NEEDS AND 2 PRIORITIES, - THE DEPED, CHED, AND TESDA, THROUGH THEIR 3 RESPECTIVE REGIONAL, PROVINCIAL AND FIELD OFFICES, SHALL MAKE 4 AN ANNUAL DETERMINATION OF THE NEEDS AND PRIORITIES OF PUBLIC 5 EDUCATION INSTITUTIONS WITHIN THEIR LOCATION, WHICH MAY SERVE 6 AS A GUIDE FOR STRATEGIC INTERVENTIONS IN PARTNERSHIP WITH THE 7 PRIVATE SECTOR.

Sec. 10. Implementing Rules and Regulations. - Within sixty (60) days from the

9 effectivity of this Act, the DepEd, CHED, TESDA, DTI and DOLE, in consultation with the DOF, including the BIR, and the BOO, and the Early Childhood Care and Development (ECCD) Council Secretariat, shall formulate the implementing rules and regulations to implement this Act.

Sec. 11. Transitory Clause. - To prevent any delay in the delivery of goods,

services, and real property, the provisions of Republic Act No. 8525 shall apply to pending and ongoing transactions and/or donations by adopting individuals or entities.

Sec. 12. Repealing Clause. - All laws, decrees, orders, rules, and regulations or

parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 13. Separability Clause. - If any provision of this Act is held invalid or

unconstitutional, the same shall not affect the validity and effectivity of the other provisions hereof.

Sec. 14. Effectivity. - This Act shall take effect after fifteen (15) days following

its publication in the Official Gazette or in a newspaper of general circulation. Approved,