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Educational Savings Accounts through the CHOOSE ACT
The CHOOSE Act was signed into law by Gov. Kay Ivey on March 7, 2024. The CHOOSE Act makes refundable income tax credits called education savings accounts (ESAs) available to support the success of every K5-12 student in Alabama. In brief, the CHOOSE Act provides funds for eligible students which may be used to cover tuition, fees, and other qualified education expenses at approved education service providers (ESPs) in Alabama. The purpose of “School Choice” for states across our nation is to provide alternative ways to increase access to education.
What Educational Expenses are covered by an ESA?
The annual amount of the credit will be $7,000 or the actual cost of the qualifying educational expenses, whichever is less.- Tuition and fees
- Textbooks
- After-school or summer education fees
- Private tutoring
- Curricula or instructional materials
- Educational software and applications
- Fees for standardized assessments, including college admissions and AP testsEducation services for students with disabilities
What is needed to complete the application?
- Student Birth Certificate
- Proof of Alabama Residency - Includes documentation that matches the physical address listed on the application. Examples include a recent tax return, state driver's license, state issued ID, utility bill, voter registration card, mortgage statement, rental or lease agreement.
- Proof of Income - Includes documentation such as the most recent federal or state tax return record, Form W-2 or 1099, Social Security statement, Temporary Assistance for Needy Families (TANF) or Supplemental Nutrition Assistance Program (SNAP) benefits statement.
The application period is now open through April 7, 2025.