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This user-friendly platform is designed to help you navigate the diverse landscape of Education Savings Accounts across different states. This tool offers a comprehensive comparison of ESA policies.

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First choose the specific policy you want to compare. Then from the list of state, you can choose the specific state policies you would like to compare. The results will show you the bill language of the particular policy feature included in the the program.

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ALABAMA: Creating Hope and Opportunity for Our Students' Education (CHOOSE) Tax Credit

ESA comparison by Policy Hits: 94
  • Fund Administrator:
    • Synopsis:

      Department of Revenue (ADOR)

      , Statute Language:

         qualifying educational expenses; to direct the Department of
         Revenue to establish education savings accounts through which
         parents can access funds to direct the education of
         participating students through education service providers and
         participating schools; to establish CHOOSE Act program
         requirements for parents of participating students, education
         service providers, and participating schools; to specify
         powers and duties of the Department of Revenue in
         administering the CHOOSE Act program; to prevent fraud or
  • Funding Mechanism:
    • Synopsis:

      Appropriation

      , Statute Language:

             Section 8. (a)(1) The CHOOSE Act Fund is created in the
         State Treasury for the purpose of providing funding for the
         tax credits authorized by this act. Notwithstanding any
         other provisions of law to the contrary, the Legislature
         shall appropriate not less than $100 million to this fund
         beginning with appropriations made for the fiscal year
         ending September 30, 2026, and continuing annually
         thereafter.
  • Program Administrator (Gov't):
    • Synopsis:

      Department of Revenue

      , Statute Language:

         qualifying educational expenses; to direct the Department of
         Revenue to establish education savings accounts through which
         parents can access funds to direct the education of
         participating students through education service providers and
         participating schools; to establish CHOOSE Act program
  • Third Party Administrator:
    • Synopsis:

      Class Wallet

      , Statute Language:

             (f) The department may enter into contracts for the
         implementation of all or part of this act. Any procurement
         necessary for the initial implementation of the program
         shall be considered a special procurement under Section 137,
         Chapter 4, Title 41, Code of Alabama 1975.
  • Role of DOE:
    • Synopsis:

      None

      , Statute Language:

      No language
  • Application Window/Dates:
    • Synopsis:

      Family Applications Open on January 2, 2025

      , Statute Language:

               (2) Establish and publicize a deadline by which
          application forms must be submitted to the department.
  • Fund Disbursement Frequency:
    • Synopsis:

      Funds will be deposited into the student’s ESA beginning July 1, 2025.

      , Statute Language:

             (4) Create an ESA for the parent of the participating
         student and make deposits of the amount of any tax credits
         awarded under section 3.
             (5) Establish a system by which a parent of a
         participating student can make periodic payments from ESAs
         to an education service provider or participating school
         including by electronic or online fund transfer. Nothing in
         this act shall be construed as authorizing the payment of
         program funds directly to a participating student or his or
         her parent.
  • Average Per-Pupil Funding:
    • Synopsis:

      $7,000 for students in participating private schools; $2,000 for other students with a $4,000 cap per family

      , Statute Language:

                 (c)(1) For participating students enrolled in a
          participating school, the annual amount of the credit shall
        be $7,000 or the actual cost of the qualifying educational
         expenses, whichever is less.
             (2) For participating students not enrolled in a
         participating school, the annual amount of the credit shall
         be $2,000 or the actual cost of the qualifying educational
         expenses, whichever is less; provided that the aggregate
         amount of all credits awarded to a parent for such students
         shall not exceed $4,000.
  • Income Limit:
    • Synopsis:

      Year 1 & 2 < 300% x FPL; Year 3 & After None

      , Statute Language:

                 (b)(1) For the years beginning on January 1, 2025, and
          January 1, 2026, the credit shall be available to the parent
          of an eligible student whose family had an adjusted gross
          income not exceeding 300 percent of the federal poverty
          level for the preceding tax year. The credit shall be
          awarded in an amount specified in subsection (c) and subject
          to the priorities specified in subsection (d).
                 (2) For the years beginning on or after January 1,
          2027, the credit shall be available to any parent of an
          eligible student. The credit shall be awarded in an amount
          specified in subsection (c) and subject to the priorities
          specified in subsection (d).
  • Prior Year Public School Requirement:
    • Synopsis:

      None

      , Statute Language:

             (5) ELIGIBLE STUDENT. A child aged 5 to 19 years who
         resides in this state and who has not graduated high school
         or a child aged 5 to 21 years who resides in this state and
         qualifies for services under the Individuals with
         Disabilities Education Act (IDEA) of 1975 or Section 504 of
         the Rehabilitation Act of 1973. The term does not include a
         student receiving scholarship funds or a tax credit under
         the Alabama Accountability Act of 2013, Chapter 6D of Title
         16, Code of Alabama 1975. The term does not include a child
         who is enrolled in a private school as defined in section
         16-28-1 that is not a participating school. The term does not include a child who is not lawfully present in the
         United States.
  • Geographic Limit:
    • Synopsis:

      Statewide

      , Statute Language:

         resides in this state and who has not graduated high school
         or a child aged 5 to 21 years who resides in this state and
         qualifies for services under the Individuals with
         Disabilities Education Act (IDEA) of 1975 or Section 504 of
         the Rehabilitation Act of 1973. The term does not include a
         student receiving scholarship funds or a tax credit under
         the Alabama Accountability Act of 2013, Chapter 6D of Title
         16, Code of Alabama 1975. The term does not include a child
         who is enrolled in a private school as defined in section
         16-28-1 that is not a participating school. The term does not include a child who is not lawfully present in the
         United States.
  • Additional Eligibility Check:
    • Synopsis:

      Lawful presence in the United States. Priority eligibility check- first 500 credits for special needs; participating siblings, military dependents, residents of priority schools, low-income.

      , Statute Language:

      The term does not include a student receiving scholarship funds or a tax credit under the Alabama Accountability Act of 2013, Chapter 6D of Title 16, Code of Alabama 1975. The term does not include a child who is enrolled in a private school as defined in section 16-28-1 that is not a participating school. The term does not include a child who is not lawfully present in the United States.
  • Homeschool Compatible:
    • Synopsis:

      Yes

      , Statute Language:

             (5) ELIGIBLE STUDENT. A child aged 5 to 19 years who
         resides in this state and who has not graduated high school
         or a child aged 5 to 21 years who resides in this state and
         qualifies for services under the Individuals with
         Disabilities Education Act (IDEA) of 1975 or Section 504 of
         the Rehabilitation Act of 1973. The term does not include a
         student receiving scholarship funds or a tax credit under
         the Alabama Accountability Act of 2013, Chapter 6D of Title
         16, Code of Alabama 1975. The term does not include a child
         who is enrolled in a private school as defined in section
         16-28-1 that is not a participating school. The term does not include a child who is not lawfully present in the
         United States.
  • Enrollment Cap:
    • Synopsis:

      Funded through an appropriation

      , Statute Language:

             Section 8. (a)(1) The CHOOSE Act Fund is created in the
         State Treasury for the purpose of providing funding for the
         tax credits authorized by this act. Notwithstanding any
         other provisions of law to the contrary, the Legislature
         shall appropriate not less than $100 million to this fund
         beginning with appropriations made for the fiscal year
         ending September 30, 2026, and continuing annually
         thereafter.
  • Lottery:
    • Synopsis:

      None

      , Statute Language:

      No language
  • Testing:
    • Synopsis:

      National/State (Except IEP)

      , Statute Language:

             (5)a. Require all participating students receiving
         program funds to take a standardized assessment aligned to
         the curricula of the participating school, a nationally
         norm-referenced achievement assessment, or a nationally
         recognized aptitude assessment of the participating school's
         choice. Students with disabilities for whom testing is not
         appropriate are exempt from this requirement.
  • Authorized Use of Funds:
    • Synopsis:

      Private School Tuition
      Online Education
      Education Therapies
      Private Tutoring
      Public School Services (Classes and/or Extracurricular)
      Textbooks
      Curricula and Supplementary Materials
      Computers/Technology
      Testing Fees
      Summer/Afterschool learning (not daycare)

      , Statute Language:

             (10) QUALIFYING EDUCATIONAL EXPENSES. Expenses incurred
         by a parent of an eligible student in one or more of the
         following categories:
             a. Tuition and fees at a participating school.
             b. Textbooks.
             c. Fees for after-school or summer education programs
         provided by a participating school.
             d. Private tutoring.
             e. Curricula or instructional materials.
             f. Tuition and fees for nonpublic online learning
         programs.
             g. Educational software and applications.
             h. Fees for standardized and nationally recognized
         assessments, including college admissions tests and advanced
         placement examinations and related preparatory courses.
             i. Education services for students with disabilities
         from a licensed or accredited practitioner or education
         service provider.
             j. Contracted services provided by a public school
         district including specific classroom instruction.