Alabama has two educational choice programs. Both programs are tax-credit style programs.

Alabama offers K–12 students and their families several types of school choice, including two private school choice programs, charter schools, magnet schools and homeschooling. 

Education Scholarship Program

  • Alabama offers a refundable tax credit program to parents who transfer their children enrolled in or assigned to a failing public school to a non-failing public or private school. Different from traditional tax credit programs, refundable tax credits have greater value for parents of more modest incomes.
  • Enacted 2013

Program Rules:

    • Income Limit: 100 percent x FRL 
    • Prior Year Public School Requirement: Yes, with exceptions Geographic Limit: Statewide 
    • Enrollment Cap: None 
    • Scholarship Cap: $6,000 (K–5), $8,000 (6–8), $10,000 (9–12) 
    • Testing Mandates: State test or Nationally norm-referenced tests 
    • Credit Value: 100% 
    • Per Donor Credit Cap: 50% liability up to $50,000 (individual) / 50% liability (business) 
    • Total Tax Credit Cap: $30 million 

Accountability Act of 2013 Parent-Taxpayer Refundable Tax Credits

  • Alabama’s Education Scholarship Program is a tax-credit scholarship, which allows taxpayers who donate to nonprofit scholarship-granting organizations to receive tax credits for their contributions.
  • Enacted 2013

Program Rules:

    • Income Limit: None
    • Prior Year Public School Requirement: Yes (Families must show a cost of transfer from a failing public school to a non-failing public school or a private school. Families may continue to receive the tax credit or rebate until the student reaches the highest grade level of the failing public school they are zoned to attend.)
    • Geographic Limit: Statewide
    • Enrollment Cap: None
    • Credit Value: 100%
    • Individual Credit / Rebate Cap: lessor of tuition or 80% state average
    • Testing Mandates: State  test or Nationally norm-referenced tests
    • Limited to students in low-performing schools

To find out more about educational choice programs in your state, please complete the below form.