REPRES,

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

20 JUL 2005
TIME
\e By

‘TWENTIETH CONGRESS
First Regular Session

2641

HOUSE BILL NO.

Introduced by Representative WALFREDO “ARMAN” R. DIMAGUILA, JR.

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

Republic Act No. 8525, or the Adopt-A-School Act of 1998, opened the door for private
individuals and enterprises to partner with public schools in addressing chronic
shortages in classrooms, facilities, instructional materials, and teacher development.
Twenty-seven years later, program reviews reveal that the promise of this landmark
statute remains largely untapped. The Second Congressional Commission on
Education (EDCOM 2) reports that since 1996 no private organization has successfully
claimed the tax incentives provided under the law, and between 2018 and 2025 the
Department of Education endorsed only 476 applications for tax endorsement, none
of which resulted in an approved tax deduction with the Bureau of Internal Revenue.

During the same period the education sector's resource gaps have widened. As of
January 2025 the Department of Education estimates a shortage of more than
165,000 classrooms, with overcrowding forcing shifts in nearly one-half of all public
elementary and secondary schools. Approximately 1,500 last-mile schools operate
without electricity, and nearly 1,000 still lack functional toilets. Only 1.8 percent of
public schools enjoy stable Wi-Fi connectivity, while many government-procured
computers remain outdated or undelivered, limiting the nation’s capacity for digital
learning.

RECEIVED


In the Senate, Senator Paolo Benigno "Bam" Aquino IV has filed a bill to modernize
and expand the Adopt-A-School framework. Guided by the spirit and substantive
proposals of his measure, this counterpart House Bill seeks to align private-sector
incentives with today’s urgent needs and streamline the administrative path from
donor intent to classroom impact. It broadens the scope of eligible beneficiaries to
include early childhood centers, alternative learning systems, technical-vocational
institutions, and state universities. It rationalizes and enhances deductions, introduces
payroll credits for enterprises employing public senior high-school graduates, and
exempts qualified donations from customs duties and value-added tax.

To ensure ease of participation and transparency, the bill establishes an
‘Adopt-A-School One-Stop Shop and online portal that consolidates application,
endorsement, and reporting processes across government agencies. It likewise
creates a stronger coordinating council composed of education, finance, trade, and
labor agencies together with a reputable business-sector representative, tasked to
conduct periodic reviews, publish program data, and recommend policy adjustments.

By reinforcing public-private collaboration, sharpening fiscal incentives, and removing
bureaucratic hurdles, this measure empowers every Filipino and every enterprise to
help build classrooms, upgrade laboratories, modernize digital infrastructure,
strengthen teacher capacity, and nourish learners in the country’s most underserved
communities. Its passage will unlock much-needed resources that Government alone
cannot supply, and will give real substance to the constitutional mandate that the
State shall assign the highest budgetary priority to edu



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10

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

2641

HOUSE BILL NO.

Introduced by Representative WALFREDO “ARMAN” R. DIMAGUILA, JR.

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 House of Representatives and the Senate 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
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


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[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 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
OR FOREIGN, OF GOOD STANDING to assist [a] public [school] EDUCATIONAL
INSTITUTIONS, whether EARLY 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, 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


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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
[school] 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 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:


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“Section [4] 5. Periodic Review. - A review of the adoption shall be undertaken by the
[local school board of the province or city where the school] 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] 8 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
board] 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. Sections 5 and 6 of Republic Act No. 8525 are hereby repealed and

replaced with a new Section, as follows:

“SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR ENTITIES. -
PROVISIONS OF EXISTING LAWS TO THE CONTRARY NOTWITHSTANDING,
ADOPTING INDIVIDUALS OR ENTITIES SHALL ENJOY 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


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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 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
LEAST ONE YEAR.

) 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. 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


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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
(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 to be
appointed by the President of the Philippines, 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 through a mutual agreement,
AND IN COORDINATION WITH DBM, 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.”


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Sec. 9. Insert a new Section under Republic Act No. 8525 as follows, and
renumber the succeeding sections accordingly:

“SEC. 9. 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. Jmplementing Rules and Regulations. -Within sixty (60) days from the
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,