Enacted 2013 • Launched 2013 • Tax-Credit Scholarship
Alabama’s Accountability Act of 2013 allows individuals and corporations to claim a 100 percent tax credit for contributions to approved Scholarship Granting Organizations (SGOs). Individuals and corporations can claim tax credits up to 50 percent of their tax liability; however, individual tax credits cannot exceed $7,500 per taxpayer or married couple filing jointly. Taxpayers may carry forward a tax credit under this program for three years. The total amount of tax credits awarded statewide is limited to $25 million.
Latest Stats (2013)
- Students participating: n/a
- Schools participating: n/a
- Scholarship organizations: n/a
- Average scholarship value: n/a
Each SGO determines the amount of scholarships it distributes.
Children are eligible to receive scholarships if their family income does not exceed 150 percent of Alabama’s median household income and their family income does not exceed 200 percent of the federal poverty level ($47,100 for a family of four). Also, qualifying students must 1) be younger than 19 years of age, 2) be public or private school students zoned to attend a public school designated as failing, or 3) have been a non-graduate scholarship recipient in the previous school year under this program, regardless of household income. Alabama defines a public school as failing if it meets one or more of the following requirements: The school is labeled as persistently low-performing by the Alabama State Department of Education; the school is designated as a failing school by the state Superintendent of Education; the school does not exclusively serve a special population of students; or the school has been listed three or more times during the most recent six years in the lowest 6 percent of public K-12 schools on the state standardized assessment in reading and math. If an SGO has scholarship funds unaccounted for on September 15 of each year, scholarships may be made available to low-income students in public school, regardless of whether or not their assigned public school is considered failing.
Rules & Regulations
- Income Limit: 150 percent x median household income and under 200 percent federal poverty
- Prior Year Public School Requirement: SGOs are required to give at least 75 percent of scholarships to first-time recipients of scholarships who were not continuously enrolled in a private school during the previous year.
- Geographic Limit: Statewide
- Enrollment Cap: None
- Scholarship Cap: Full Tuition
- Testing Mandates: State achievement tests or nationally recognized norm-referenced tests
- Credit Value: Corporations can receive a 100 percent tax credit for 50 percent of tax liability. Individuals can receive a tax credit worth up to $7,500.
- Budget Cap: $25 million
Stephanie Linn | firstname.lastname@example.org