Adopt-a-school Act of 2026

Senate Office of the deer TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES MAY 20 P12:46 First Regular Session RECEIVED BY: SENATE Senate Bill No. 2146 Introduced by Senator JOEL VILLANUEVA 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 Philippine education sector continues to confront longstanding and emerging challenges that affect the quality, accessibility, and inclusiveness of learning across the country. Among these are inadequate school infrastructure, limited access to basic utilities and digital connectivity, and persistent disparities in educational opportunities, particularly in underserved or last mile and geographically isolated and disadvantaged (GIDA) areas. These challenges directly and indirectly impact learners, teachers, and schools, underscoring the need for a whole-of-nation approach to strengthening the country's education system. Recognizing the important role of private sector participation in education, Republic Act No. 8525, or the "Adopt-a-School Act of 1998," was enacted to encourage individuals, corporations, and organizations to support the modernization and upgrading of public schools through incentives and partnerships with government. Over the years, private entities have extended valuable assistance to public educational institutions through donations for classrooms, facilities, instructional materials, and equipment. Data from the Second Congressional Commission on Education (EDCOM 2) show that only 476 tax endorsements have been processed since 2018 to 2025.1 DepEd. Boost sa PBBM Education Agenda: DepEd suportado ang tax incentive reform para sa Adopt-a-School. Published on 25 April 2025. Available at https://www.deped.gov.ph/2025/04/25/boost-sa-pbbm-education- agenda-deped-suportado-ang-tax-incentive-reform-para-sa-adopt-a-school/ (Accessed on 13 May 2026).

This measure seeks to enhance the Adopt-a-School Act by expanding the forms of assistance that may be extended to public educational institutions. In addition to infrastructure support and donations of learning materials, the bill includes programs for teacher training and professional development, support for daycare and child development workers, technical-vocational trainers, scholarships, competency assessments, and certifications that improve employability and workforce readiness. The proposed measure likewise introduces stronger and clearer incentives to encourage broader private sector engagement. These include additional deductions from taxable income for employers who hire Senior High School graduates from partner public schools, as well as exemptions from customs duties, value-added tax, excise tax, and donor's tax for qualified educational donations. To improve coordination and implementation, the bill expands the composition of the Adopt-a-School Coordinating Council to include the Department of Trade and Industry (DTI), the Department of Labor and Employment (DOLE), the Bureau of Internal Revenue (BIR), and industry representatives. Strengthening inter-agency and industry collaboration will help ensure that educational interventions are aligned with labor market demands and national development priorities. Furthermore, the measure directs the Department of Education (DepEd), the Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA) to periodically identify and prioritize the needs of public educational institutions within their respective jurisdictions. Through a more strategic and data-driven approach, private investments and assistance can be directed toward areas where they are most needed and where they can create the greatest impact. When we accept education as a shared responsibility, we will be able to create stronger partnerships between government and the private sector in addressing the evolving needs of learners and schools. Through expanded collaboration, improved incentives, and more responsive mechanisms for support, the measure ultimately aims to help build a more resilient, inclusive, and future-ready education system for all Filipinos. In view of the foregoing, the immediate passage of this bill is earnestly sought.

Senat Office of the @creta TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 26 MAY 20 P12:46 First Regular Session ) RECEIVED BY: SENATE Senate Bill No. _ 2146 Introduced by Senator JOEL VILLANUEVA 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 of Republic Act No. 8525 is hereby amended to

2 read as follows: "SECTION 1. Title. - This Act shall be known and cited as the ["Adopt-a-School Act of 1998".] "ADOPT-A-SCHOOL ACT OF 2026".

SEC. 2. Section 2 of Republic Act No. 8525 is hereby amended to read

as follows: "SEC. 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 TRAINING AND EMPLOYMENT OF SENIOR HIGH SCHOOL (SHS) GRADUATES."

SEC. 3. Section 3 of Republic Act No. 8525 is hereby amended to read

as follows: "SEC. 3. Adopt-a-School Program. - There is hereby established the "Adopt-a-School Program" which will allow private INDIVIDUALS OR entities OF GOOD STANDING, WHETHER LOCAL OR FOREIGN, to assist [al public [schoot] whether EARLY EDUCATIONAL INSTITUTIONS, CHILDHOOD, elementary, secondary, 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, TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING (TVET) TRAINERS, FACULTY, AND LEARNERS; ASSESSMENTS IN PURSUIT OF RELEVANT WORK-RELATED CERTIFICATIONS AND CREDENTIALS; SCHOLARSHIPS FOR TEACHERS; DONATION OF 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 OR ELECTRONIC BOOKS (E-BOOKS), publications, SCHOOL SUPPLIES, and other instructional materials THAT MAY BE DEEMED APPROPRIATE FOR THE LEARNING AND DEVELOPMENT OF STUDENTS, SUCH AS COMPUTERS, FURNITURE, EDUCATIONAL FILMS AND AUDIO-VISUAL MATERIALS, TECHNICAL VOCATIONAL LIVELIHOOD (TVL) TOOLS AND EQUIPMENT, HEALTH AND NUTRITION PACKAGES, ASSISTIVE LEARNING DEVICES AND EQUIPMENT FOR LEARNERS WITH SPECIAL NEEDS; and modernization of instructional technologies. 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 [schoot] EDUCATIONAL INSTITUTION concerned: Provided, That such MOA shall be subject to review and approval of the [Superintendent of Schools of the province or district concerned] 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. A new Section 3-A is hereby inserted to read as follows:

"SEC. 3-A. 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 to read

as follows: "SEC. 4. Periodic Review. - A review of the adoption shall be undertaken by the [local school board of the province or city where the schoot] CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE WHERE THE PARTICIPATING SCHOOL is located. The standards and guidelines for the review shall be formulated by the ADOPT-A-SCHOOL Coordinating Council created under Sec. 7 hereof. The 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 beard] CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE may, after an appropriate review, recommend to the ADOPT-A-SCHOOL Coordinating Council the 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. Section 5 of Republic Act No. 8525 is hereby repealed and

replaced with the following:

"SEC. 5. INCENTIVES FOR ADOPTING INDIVIDUALS OR ENTITIES. - PROVISIONS OF EXISTING LAWS TO THE CONTRARY NotWITHSTAndING, ADOPTING INDIVIDUALS OR ENTITIES SHALL AVAIL OF THE FOLLOWING 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 FIFTY PERCENT (50%) OF SUCH EXPENSES. 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 HIGH SCHOOL (SHS) GRADUATES - ADOPTING INDIVIDUALS OR ENTITIES WHO HIRE SENIOR HIGH SCHOOL (SHS) GRADUATES FROM THEIR PARTNER PUBLIC INSTITUTION SHALL ENJOY AN ADDITIONAL DEDUCTION EQUIVALENT TO 20% OF THE SALARIES, WAGES, AND BENEFITS PAID TO THE EMPLOYED SHS GRADUATE: PROVIDED, THAT THE SHS GRADUATE IS REGULARLY EMPLOYED FOR AT LEAST ONE YEAR. (c) ADDITIONAL INCENTIVES - IN ACCORDANCE WITH EXISTING LAWS 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. Section 6 of Republic Act No. 8525 is hereby repealed and

replaced with the following: "SEC. 6. 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 to read

as follows: "SEC. 7. 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 SECRETARY, as chairperson; the ChairPERSON[man] of [the Commission on Higher Education (CHED)] CHED and the Director-General of [the Technical Education and Skills Development Authority (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 from a [national federation of chambers of commerce and industry] REPUTABLE BUSINESS GROUP, to be

appointed by the President of the Philippines WITH A TERM OF THREE (3) YEARS AND MAY BE REAPPOINTED FOR ANOTHER THREE (3) YEARS, as members. THE SECRETARIES OF DEPED, DTI, AND DOLE, THE CHAIRMAN OF CHED, 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 THEIR RESPECTIVE PRINCIPALS. 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, AND BIR, IN COORDINATION WITH THE DEPARTMENT OF BUDGET AND MANAGEMENT, through a mutual agreement, shall each make provisions for the secretariat of the Council. THE COUNCIL SHALL COORDINATE WITH NATIONAL GOVERNMENT AGENCIES (NGAS) AND EXISTING COUNCILS RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS OF THIS ACT."

SEC. 9. A new Section 7-A is hereby inserted to read as follows:

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

SEC. 10. Implementing Rules and Regulations. - The rules and

2 regulations necessary for the effective and efficient enforcement of the 3 provisions of this Act shall be formulated by the DepEd, jointly with CHED, 4 TESDA, DTI and DOLE, in consultation with relevant government agencies, 5 LGUs, the private sector, and other stakeholders, and shall be implemented 6 within ninety (90) days from the effectivity of this Act. Unjustified or willful failure or refusal of the concerned government 8 agencies to promulgate the implementing rules and regulations (IRR) within 9 the specified period shall subject the heads of these government agencies to 10 administrative penalties under applicable civil service laws. Should the IRR contain provisions that are contrary to this Act, the heads of the government agencies responsible for such provision, when done in bad faith or with gross negligence, shall be held administratively liable.

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 17 individuals or entities.

SEC. 12. Separability Clause. - If any portion or provision of this Act

19 is declared unconstitutional, the remainder hereof or any provisions not affected thereby shall remain in force and effect.

SEC. 13. Repealing Clause. - Any law, presidential decree or issuance,

executive order, letter of instruction, rule, or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 14. Effectivity, - This Act shall take effect fifteen (15) days after

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