Creating Hope and Opportunity for Our Students’ Education Act of 2024 The CHOOSE Act

The CHOOSE Act, signed into law by Gov. Kay Ivey on March 7, 2024, makes refundable income tax credits called education savings accounts (ESAs), available to support the success of every K-12 student in Alabama. The law requires the Alabama Department of Revenue to establish a framework and funding for ESAs, which may be used by eligible families to cover tuition, fees, and other qualified education expenses at approved education service providers (ESPs) in Alabama.

ESAs in the amounts below will be available beginning with the 2025-2026 Academic Year:

• Up to $7,000 per participating student enrolled in a participating school
• Up to $2,000 per participating student not enrolled in a participating school (e.g. students that participate in individual or group homeschool programs or co-ops, non-participating schools, or other similar programs); capped at $4,000

Year 1: Academic Year 2025-2026, the credits will be awarded as follows:

• The first 500 ESAs awarded for participating students* with special-needs
• Participating students* who are dependents of active-duty service members enrolled in or assigned to a priority school
• Remaining awarded for participating students* whose family have an adjusted gross income not exceeding 300 percent of the federal poverty level for the preceding tax year
  
  *Priority goes first to participating students and siblings of participating students.

Year 2: Academic Year 2026-2027, the credits will be awarded as follows:

• The first 500 ESAs awarded for participating students* with special-needs
• Participating students* previously awarded in the prior academic year
• Participating students* who are dependents of active-duty service members enrolled in or assigned to a priority school
• Remaining awarded for participating students* whose family have an adjusted gross income not exceeding 300 percent of the federal poverty level for the preceding tax year
  
  *Priority goes first to participating students and siblings of participating students.

Year 3: Academic Year 2027-2028 and beyond, the credits will be awarded as follows:

• The first 500 ESAs awarded for participating students* with special-needs
• Participating students* previously awarded in the prior academic year
• Participating students* who are dependents of active-duty service members enrolled in or assigned to a priority school
• Remaining credit awarded for participating students* regardless of adjusted gross income
  
  *Priority goes first to participating students and siblings of participating students.

*ADDITIONAL INFORMATION AND SUBSCRIPTION EMAIL UPDATES COMING SOON*