Senator Jackson Andrews presented Senate Bill 123, saying the bill "authorizes an income tax credit for donations to certain public schools." He told the House Committee on Appropriations the credit is available to individuals and corporations who donate to qualifying public schools, with a statutory cap and administrative rules to be handled by the Department of Revenue.

Committee staff read Department of Revenue amendments that clarified administration: the credit is earned in the taxable year of the donation; taxpayers submit receipts and credits will be processed online; the program operates on a first‑come, first‑served basis; and the Act would apply to taxable periods beginning on or after Jan. 1, 2026. The committee also considered and adopted an amendment that lowered the program cap from $10,000,000 to $1,000,000.

Members asked about distribution and whether the credit would use tax dollars to subsidize donations. Senator Jackson Andrews said the intention is to encourage corporate and individual donations to underfunded D and F schools, particularly in rural areas with lower local tax bases. Representative Omidaid and Representative Almoday asked technical and policy questions about targeting and fiscal controls; staff and the sponsor responded with details from the Department of Revenue amendments.

Vice Chairman Hughes moved the bill favorable as amended; "seeing no objection," the committee reported Senate Bill 123 favorable as amended. Committee members noted the cap and the first‑come, first‑served approach, and staff said taxpayers will submit documentation online when claiming the credit.