Alabama launches Choose Act program for student education tax credits

In a recent work session of the Alabama State Board of Education, officials outlined the details of the "Choose Act," a new initiative aimed at providing financial support for families seeking educational alternatives for their children. This program, officially known as the Creating Hope and Opportunity for Our Students Education Act of 2024, introduces a refundable income tax credit in the form of a digital wallet, designed to empower parents in choosing educational services that best meet their children's needs.

The program will offer two types of credits: $7,000 for students enrolled in participating schools and $2,000 for those in home education programs, with a cap of $4,000 per family. The total funding for the first academic year, 2025-2026, is set at $100 million, with disbursements beginning in July. Officials emphasized that approximately 75% of Alabama families could qualify for these credits, which are based on income levels not exceeding 300% of the federal poverty line.

Eligibility for the program is structured to prioritize students with special needs and those from military families. The application process, which opened on January 2 and runs until April 7, allows families to submit necessary documentation through a user-friendly online portal. Award notifications will be sent out starting May 1, with funds allocated based on the applicants' adjusted gross income.

The digital wallet system, managed by Class Wallet, allows families to use the credits for a variety of educational expenses, including tuition, textbooks, tutoring, and other approved services. However, funds cannot be withdrawn as cash; they must be used within the designated platform, ensuring that spending aligns with educational purposes.

During the session, officials addressed concerns about vendor satisfaction, explaining that parents have the flexibility to switch providers if they are dissatisfied with the services received. Schools and service providers are required to report student enrollment status to ensure that funds are appropriately managed.

As the program rolls out, officials expressed their commitment to providing support and guidance to families navigating this new educational landscape. The Choose Act aims to enhance educational opportunities across Alabama, fostering a more personalized approach to learning for students statewide. For more information, families can visit the program's dedicated website at chooseact.alabama.gov.