Alabama’s CHOOSE Act Will Give Families $7,000 Back on Taxes

Choose Act signed into law

Governor Kay Ivey officially signed HB129, commonly known as the CHOOSE Act, into law on Friday, March 8.

The education savings bill will create an education savings account (ESA) of $7,000 for parents to use towards private school tuition if they do not want to enroll in public schools.

Choose Act signed into law

The bill passed the Alabama Senate floor earlier this week with a vote of 23-9 along party lines.

“Today Alabama put school children and their families first,” said Senate President Pro Tempore Greg Reed. “Children are our future, and there is no greater responsibility for lawmakers than ensuring our kids have every resource needed for academic success regardless of their zip code.”

Senate Minority Leader Bobby Singleton, who opposed the CHOOSE Act questioned the bill’s ethical nature, calling it “the new segregation.”

Governor Ivey recently announced that passing the CHOOSE Act was one of her main legislative goals in 2024, and she managed to waste little time getting it done.

“While our state has a strong public education system, all Alabama families will soon have the right to choose their children’s schools,” said Governor Ivey.

She continued, “We want every Alabama student – whether they are at a public school, private school, magnet, charter, or homeschool – the opportunity to receive a high-quality education.”

How Will the CHOOSE ACT Work?

Each year, lawmakers will designate at least $100 million to fund ESAs. All of this will be managed by the Alabama Department of Revenue, and any money that is not used will roll over to the following year, up to $500 million.

The ESA accounts will be available in the 2025-26 school year to a limited number of eligible students. To be eligible, students must be enrolled in a private or public school through an ESA.

In the 2027-28 school year, ESA’s will fully roll out and will be available to all eligible students.

Further, parents who homeschool their children will be able to receive up to $2,000 for a student, with a cap of $4,000 for the family.

If you’d like to do some more research you can read the full HB129 here.