TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE
s. No. 775
of til? •f'
25 JUL31 P2 51
RtCEIVFD BY;
Introduced by Senator PIA S. CAYETANO
AN ACT
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
Articles XIII and XIV of the 1987 Philippine Constitution affirm the State's duty 
to promote and safeguard every citizen's right to quality education, and to ensure its 
accessibility at all levels. To achieve this, the State is mandated to establish and 
maintain a system of free public education that is responsive to the needs of society. 
In support of these, the State shall give education the highest budgetary priority to 
ensure adequate funding for facilities, teaching personnel, instructional materials, and 
other essential resources that contribute to meaningful and inclusive learning.
Republic Act No. 8525, also known as the "Adopt-a-School Act of 1998", was 
enacted with the goal of encouraging the private sector to support the modernization 
and development of the public education system. The private sector has long been a 
partner of the government in the delivery of essential services, and has helped reduce 
the resource gaps in public schools. To further encourage and incentivize this public- 
private partnership, this measure improves and builds upon the existing Adopt-a- 
School Act.
This proposed bill seeks to strengthen the connection between educational 
institutions and their corresponding industries, particularly in the areas of training and 
employment for Senior High School graduates. It establishes an Adopt-a-School One-


stop Shop, which shall serve as a central hub for inquiries and applications of 
interested entities, thereby enhancing the program's accessibility and administrative 
efficiency. Furthermore, it introduces enhanced fiscal incentives, including tax 
exemptions and additional allowable deductions, to encourage participation from 
private individuals and entities.
The Adopt-a-School Coordinating Council is broadened to include key 
government agencies and a private sector representative to strengthen policy 
alignment and effective implementation. The DepEd, CHED, and TESDA are mandated 
to conduct reguiar assessments of public education needs to guide strategic 
collaborations and investments from the private sector.
This measure builds upon and harmonizes the legislative initiative filed in the 
19th Congress by former Senator and current Department of Education Secretary 
Sonny Angara. The said proposal aims to enhance the quality and accessibility of 
education, bridging the gap between academic institutions and industry needs, and 
equipping Filipino learners with the skills necessary to thrive in a competitive 
workforce. It presents a unified and strategic approach to improving the country's 
public education system through stronger public-private collaboration.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
PIA S. CAYcTANO


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. NO. 775
of ll)f fen rci-ii-p
25 JUL31 P2:51
RliCEIVcD 8Y:
Introduced by Senator PIA S. CAYETANO
AN ACT
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, otherwise known as the "Adopt- 
a-School Act of 1998", is hereby amended to read as follows:
"Section 1. Tide. - This Act shail be known and cited as the "Adopt-a- 
Schoo! Act of [1998]2025."
Sec. 2. Section 2 of Republic Act No. 8525 is hereby further amended to read 
as follows:
"Section 2. Declaration of Policy. - It is the policy of the State to provide 
quality and relevant education to the Fiiipino youth and to encourage 
private initiative to support public education. Towards this end, the State 
shall institute programs to INCENTIVIZE THE [encourage] private 
SECTOR, [companies and enterprises] to ASSIST [help] in the 
DEVELOPMENT, upgrading, and modernization of THE COUNTRY'S 
public EDUCATION SYSTEM AND ESTABLISH PROPER LINKAGES 
BETWEEN EDUCATIONAL INSTITUTIONS AND THEIR 
RESPECTIVE INDUSTRIES, PARTICULARLY IN THE TRAINING 
AND EMPLOYMENT OF SENIOR HIGH SCHOOL (SHS)


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GRADUATES [schools in the country, particularly those in poverty- 
stricken provinces]."
Sec. 3. Section 3 of Republic Act No. 8525 is hereby further amended to read 
as follows:
"Section 3. Adopt-a-Schoo! Program. - There is hereby estabiished the 
"Adopt-a-School Program" which will allow private INDIVIDUALS OR 
entities, WHETHER LOCAL OR FOREIGN, OF GOOD STANDING to 
assist [a] public EDUCATIONAL INSTITUTIONS [school], whether IN 
EARLY CHILDHOOD, elementary, secondary, TECHNICAL- 
VOCATIONAL, ALTERNATIVE LEARNING SYSTEM (ALS) or 
HIGHER EDUCATION [tertiary], preferably located in THE 4TH, 5TH,
AND 6TH CLASS PROVINCES, CITIES, AND MUNICIPALITIES, AS 
DETERMINED BY THE DEPARTMENT OF FINANCE (DOF), IN 
ACCORDANCE WITH REPUBLIC ACT NO. 11964 OR THE 
"AUTOMATIC INCOME CLASSIFICATION OF LOCAL 
GOVERNMENT UNITS ACT", AND OTHER LOCAL GOVERNMENT 
UNITS (LGUs) EXPERIENCING SEVERE SHORTAGES, 
INSUFFICIENT BUDGET OR HAVING NUMEROUS 
ECONOMICALLY DISADVANTAGED YET HIGH PERFORMING 
LEARNERS [any of the twenty (20) poorest provinces identified by the 
Presidentiai Councii for Countryside Development or any other 
government agency tasked with identifying the poorest provinces] in, but 
not iimited to, the following areas: TRAINING, DEVELOPMENT, AND 
FURTHER EDUCATION FOR SCHOOL HEADS, TEACHERS, 
INCLUDING EARLY CHILDHOOD CARE AND DEVELOPMENT 
SERVICE PROVIDERS, TECHNICAL AND VOCATIONAL 
EDUCATION AND TRAINING TRAINERS, FACULTY AND 
LEARNERS; ASSESSMENTS IN PURSUIT OF RELEVANT WORK- 
RELATED CERTIFICATIONS AND CREDENTIALS; SCHOLARSHIPS 
FOR TEACHERS; ACQUISITION OF REAL ESTATE PROPERTY FOR 
SCHOOL FACILITIES [staff and facuity development for training and


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further education]; construction of SCHOOL facilities SUCH AS 
LIBRARIES, LABORATORIES, AND INFRASTRUCTURE RELATED 
TO POWER, WATER, AND SANITATION; [upgrading] UPGRADE 
AND REPAIR of existing facilities; provision of books, publications, 
SCHOOL SUPPLIES, and other instructional materials, INCLUDING 
ELECTRONIC BOOKS, COMPUTERS, FURNITURE, EDUCATIONAL 
FILMS AND AUDIO-VISUAL MATERIALS; PROCUREMENT OF 
TECHNICAL VOCATIONAL LIVELIHOOD TOOLS AND EQUIPMENT; 
DISTRIBUTION OF HEALTH AND NUTRITION PACKAGES; 
ACQUISITION OF 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 CONCERNED REGIONAL, PROVINCIAL, OR FIELD 
OFFICE OF THE EDUCATIONAL INSTITUTION [Superintendent of 
Schools of the province or district concerned]: Provided, further, That the 
agreement shall last for at least two (2) years with the possibility of 
extension: Provided, finaiiy, 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 
THIS ACT [the succeeding Sec]."
Sec. 4. Insert a new Section under Republic Act No. 8525 to read as follows, 
and renumber the succeeding sections accordingly:
"SEC. 4. CREATION AND ESTABLISHMENT OF AN ADOPT-A- 
SCHOOL ONE-STOP SHOP. - THE CENTRAL OFFICES OF THE 
DEPARTMENT OF EDUCATION (DEPED), COMMISSION ON 
HIGHER EDUCATION (CHED), AND TECHNICAL EDUCATION AND 
SKILLS DEVELOPMENT AUTHORITY (TESDA), INCLUDING


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THEIR RESPECTIVE REGIONAL OFFICES, SHALL ESTABLISH AND 
MAINTAIN AN ADOPT-A-SCHOOL ONE-STOP SHOP. THIS OFFICE 
SHALL SERVE AS A CENTRAL HUB FOR ADDRESSING QUERIES 
AND CONCERNS FROM PRIVATE INDIVIDUALS AND ENTITIES 
INTERESTED IN PARTICIPATING IN THE PROGRAM, AS WELL AS 
FOR RECEIVING AND PROCESSING APPLICATIONS JOINTLY 
WITH THE BUREAU OF INTERNAL REVENUE (BIR) AND BUREAU 
OF CUSTOMS (BOC): PROVIDED, THAT THE DEPED, CHED, AND 
TESDA SHALL, IN CONSULTATION WITH THE DEPARTMENT OF 
INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT), 
ESTABLISH AN INTEGRATED ONLINE PORTAL TO RECEIVE AND 
PROCESS APPLICATIONS."
Sec. 5. Section 4 of Republic Act No. 8525 is hereby further amended to read 
as follows:
"Section [4] 5. Periodic review. - A review of the adoption shall be 
undertaken by the CONCERNED REGIONAL, PROVINCIAL, OR 
FIELD OFFICE WHERE THE PARTICIPATING SCHOOL [local school 
board of the province or city where the school] is located. The standards 
and guidelines for the review shall be formulated by the ADOPT-A- 
SCHOOL Coordinating Council created under Sec. 8 [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 CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE 
[school board] may, after an appropriate review, recommend to the 
ADOPT-A-SCHOOL Coordinating Council the termination of the 
adoption. The adopting entity may appeal the assessment to the ADOPT- 
A-SCHOOL Coordinating Council whose decision shall be final and 
unappealable."
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Sec. 6. Section 5 and 6 of Republic Act No. 8525 are hereby repealed and
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replaced with a new Section to be read as follows:


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"SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR 
ENTITIES. - NOTWITHSTANDING ANY LAW TO THE CONTRARY, 
ADOPTING INDIVIDUALS OR ENTITIES SHALL ENJOY THE 
FOLLOWING INCENTIVES:
A) ADDITIONAL DEDUCTION FOR EXPENSES INCURRED FOR 
THE ADOPTION - EXPENSES INCURRED BY THE ADOPTING 
INDIVIDUAL 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 SHS GRADUATES - ADOPTING INDIVIDUALS OR 
ENTITIES WHO EMPLOY SHS GRADUATES FROM THEIR 
PARTNER PUBLIC INSTITUTION SHALL BE ENTITLED TO 
AN ADDITIONAL DEDUCTION FROM THEIR GROSS 
INCOME, EQUIVALENT TO TWENTY PERCENT (20%) OF 
THE TOTAL SALARIES, WAGES, AND BENEFITS PAID TO 
THE EMPLOYED SHS GRADUATE, SUBJECT TO THE 
PROVISIONS OF SECTION 34 OF THE NATIONAL 
INTERNAL REVENUE CODE, AS AMENDED: 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 GUIDELINES THAT 
SHALL BE PROVIDED IN THE IRR, THE ADOPTING 
INDIVIDUAL OR ENTITY SHALL BE ENTITLED TO HAVE ITS


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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 to read as follows, 
and renumber the succeeding sections accordingly:
"SEC. 7. TAX EXEMPTION - THE DONATED GOODS, REAL 
PROPERTY, AND SERVICES BY AN ADOPTING INDIVIDUAL OR 
ENTITY SHALL BE EXEMPT FROM CUSTOMS, DUTIES, VALUE- 
ADDED TAX, EXCISE TAX, DONOR'S TAX, AND OTHER FEES, AS 
THE CASE MAY BE: PROVIDED, THAT THE DONATIONS SHALL 
NOT BE RESOLD OR TRANSFERRED FOR MATERIAL 
CONSIDERATION."
Sec. 8. Section 7 of Republic Act No. 8525 is hereby further amended to read 
as follows:
"Section 8 [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 DEPED 
[Department of Education, Culture and Sports (DECS)], as chairperson; 
the Chairman of the CHED [Commission on Higher Education (CHED)] 
and the Director-General of the TESDA [Technical Education and Skills 
Development Authority (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 REPUTABLE BUSINESS GROUP [national federation of 
chambers of commerce and industry] to be appointed by the President of 
the Philippines, as members.


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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.
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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.
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The DEPED [DECS], CHED, [and] TESDA, DTI, DOLE through a mutual
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agreement, AND IN COORDINATION WITH THE DBM, shall each
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make provisions for the secretariat of the Council.
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THE COUNCIL SHALL COORDINATE WITH NATIONAL
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GOVERNMENT AGENCIES AND EXISTING COUNCILS RELEVANT
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TO THE IMPLEMENTATION OF THE PROVISIONS OF THIS ACT.
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Sec. 9. Insert a new Section under Republic Act No. 8525 to read as follows,
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and renumber the succeeding sections accordingly:
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"SEC. 9. DETERMINATION OF EDUCATION SECTOR NEEDS AND
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PRIORITIES. - THE DEPED, CHED, AND TESDA, THROUGH THEIR
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RESPECTIVE REGIONAL, PROVINCIAL, AND FIELD OFFICES,
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SHALL MAKE AN ANNUAL DETERMINATION OF THE NEEDS AND
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PRIORITIES OF PUBLIC EDUCATION INSTITUTIONS WITHIN
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THEIR JURISDICTION, WHICH MAY SERVE AS A GUIDE FOR
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STRATEGIC INTERVENTIONS IN PARTNERSHIP WITH THE
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PRIVATE SECTOR."
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Sec. 10. Implementing Rules and Regulations. - Within sixty (60) days from
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the effectivity of this Act, the DepEd, CHED, TESDA, DTI and DOLE, in consultation


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with the DOF, including the BIR, and the BOC, as well as with the participation of the
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ECCD Council Secretariat, shall formulate the implementing rules and regulations to
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implement this Act.
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Sec. 11. Transitory Clause. - To prevent any delay in the delivery of goods,
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services, and real property, the provisions or Republic Act No. 8525 also known as the
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"Adopt-a-School Act of 1998" shall still apply to pending and on-going transactions
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and/or donations by adopting individuals or entities.
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Sec. 12. Separability Clause. - If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provisions not affected thereby shall
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remain in force and effect.
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Sec. 13. Repealing Clause. - Any law, presidential decree or issuance, executive
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order, letter of instruction, rule or regulation inconsistent with the provisions of this
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Act is hereby repealed or modified accordingly.
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Sec. 13. Effectivity Clause. -This Act shall take effect fifteen (15) days following
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its complete publication in the Official Gazette or a newspaper of general circulation.
Approved,