The arrival of 2025 is year one for Alabama's Creating Hope and Opportunity for Our Students' (CHOOSE) Act, which was signed into law by Gov. Kay Ivey on March 7, 2024.
The CHOOSE Act website, www.chooseact.alabama.gov, is now set up to accept family applications for what can be up to a $7,000 refundable income tax credit, or Education Savings Account (ESA). Eligible families can use the tax credits to cover tuition, fees and other educational expenses at 'approved education service providers' in Alabama.
After years of debate, the Alabama Legislature approved the CHOOSE Act last March, with both Franklin County legislators (Rep. Jamie Kiel and Sen. Larry Stutts) voting in favor of the act.
Essentially, the law provides annual $7,000 tax credits for parents of students who enroll in private schools or $2,000 tax credits per year for parents who home school their child, with a $4,000 maximum credit for multiple students.
The act prioritizes siblings of participating students and dependents of active duty military. The tax credits are not taxable income and they are protected from offset or debt collection under the law.
The Alabama Legislature must provide at least $100 million each year to maintain the CHOOSE Act fund.
For the years 2025 and 2026, the CHOOSE Act credit is available only for parents of an eligible student whose family has an adjusted income not exceeding 300 percent of the federal poverty level for the previous tax year.
Starting January 1, 2027, the credit will be available to any parent of an eligible student, with priority given to students who participated in the program the previous year.
The first 500 ESAs will be awarded to participating students with special needs each year.
A recent Rasmussen poll commissioned by the conservative Alabama Policy Institute showed, by a 54-24% margin, Alabama voters believe parents have too little control over their children's education.
The Republican-controlled legislature approved the CHOOSE Act over objections from Democrats concerned about the negative impact of decreasing funding for public education.
One Tuscaloosa representative shared his concerns the legislation constitutes 'use of tax dollars to create separation.'
Most Democratic legislators voted against the bill, and were joined by some Republican legislators representing primarily rural districts, including Rep. Tracy Estes (R-Winfield), who stated concerns about the act's potential negative impact on rural public schools.
Franklin County Schools Superintendent of Education Greg Hamilton believes the CHOOSE Act's impact will be minimal in Franklin County.
“I'm not sure we are a good measuring stick. There aren't many private schools in our area, so rural Franklin County isn't a good source to gauge the impact of this act,” Hamilton said.
Franklin County Schools' enrollment has remained close to 3,500 the last six years, a number Hamilton “is right about where we need it.”
The Franklin County Schools system has strengthened in recent years when it comes to students wanting to enroll in a school outside their district. This is a large reason why its enrollment numbers have remained consistent after a spike in 2017 resulting from Russellville City Schools' implementation of a $600 annual tuition for students who live outside the Russellville city limits.
With federal funding approximately $7,000 per child per school year, the tax credit in the CHOOSE Act is the same. While federal funding has always 'followed' the student from one school to another, the tax credit created a way for parents to receive a benefit even if their child enrolls at a private school or is home schooled.
Although not a supporter of the legislation, Hamilton said the bill's passage wasn't a surprise to him.
“They've been trying to get it through every year I can remember, until they finally got the support needed to pass it,” Hamilton said.
