The Alabama House of Representatives has approved Gov. Kay Ivey’s school choice bill, which now goes to the Alabama Senate.
The bill, called the CHOOSE Act, would give parents the option of using their tax dollars for the type of schooling they believe is best for their children, even if it is private school or homeschool. “Today, Alabama took another important step forward in passing an effective and sustainable education savings account plan, the CHOOSE Act,” Gov. Ivey said in a statement. “I made it clear that providing Alabama families an education savings account option was my number one legislative priority, and I appreciate the Legislature for answering the call and addressing it early in the session.
If approved, the CHOOSE Act would set up education savings accounts. The ESAs would be funded through the proceeds of a new, refundable income tax credit made available to certain parents of an eligible student. For 2025 and 2026, the parent of an eligible student could receive the credit if his or her family had an adjusted gross income not exceeding 300% of the federal poverty level for the preceding year.
For 2027 and later, the credit could be available to any parent of an eligible student. The annual amount of the credit would be capped at $7,000 for participating students enrolled in a participating school. For participating students not enrolled in a participating school, the annual amount of the credit would be capped at $2,000, with a cap of $4,000 cap for the family.The bill would establish a new fund in the State Treasury to be known as the CHOOSE Act Fund.