Alabama

Alabama Accountability Act of 2013 Parent-Taxpayer Refundable Tax Credits

Alabama provides a tax credit or rebate to parents who transfer their children enrolled in or assigned to a failing public school to a non-failing public or private school.

TAX CREDIT VALUE

Parents receive a tax credit worth the lesser of (1) 80 percent of the average annual state cost of attendance for a K-12 public school student during the applicable tax year or (2) their children's actual cost of attending school. If the taxes owed by the parents are less than the total credit allowed, they may receive a rebate equal to the balance of the unused credit.

STUDENT ELIGIBILITY

Parents who transfer their child from a failing public school to a non-failing public or accredited private school are eligible. Parents with a child who is starting school for the first time in Alabama and zoned to attend a failing public school are also eligible. Alabama defines a public school as failing if it meets one or more of the following requirements: The school is labeled as persistently low-performing by the Alabama State Department of Education; the school is designated as a failing school by the state Superintendent of Education; the school does not exclusively serve a special population of students; or the school has been listed three or more times during the most recent six years in the lowest 6 percent of public K-12 schools on the state standardized assessment in reading and math.

This program launched in 2013.  

Tax Credits for Contributions to Scholarship Granting Organizations

The Tax Credits for Contributions to Scholarship Granting Organizations program allows low-income students who are zoned to failing public schools to receive a scholarship to attend the school of their choice.   

STUDENT ELIGIBILITY

  • Family income cannot exceed 150 percent of the median household income in Alabama.
  • Zoned to attend a public school designated as failing (labeled as persistently failing by the State Department of Education, designated as failing by the State Superintendent of Education, or has been listed three or more times in the lowest six percent of public schools on the state assessment).
  • After Sept. 15 of each year, SGOs may award unaccounted scholarship funds to students whose family incomes do not exceed 200 percent of the federal poverty level whether or not they are assigned to a failing school.

This program launched in 2013.