Accountability Act of 2013 Parent-Taxpayer Refundable Tax Credits

Eligible students must be enrolled in or assigned to a priority school. Alabama defines a priority school as one that 1) is designated by the state superintendent, or 2) does not exclusively serve a special needs population, and 3) received a D or F on the most recent state report card. Students qualify if they attended a priority school last year, were assigned to one for the coming year but previously attended another Alabama public school, or were newly assigned for the upcoming year. Students may transfer to another public or nonpublic school. Students enrolled in the Department of Youth Services School District are ineligible. A student remains eligible even if the school’s grade later improves. Parents receive a tax credit worth 80% of the state’s average per-pupil cost or the actual cost of attendance, whichever is less. Rebates are available if the credit exceeds taxes owed. The Department of Revenue funds rebates from the Education Trust Fund.

Funding Mechanism: Appropriation

Universal Eligibility: ❌
Universal Usage: ❌
Universal Funding: ❌
Truly Universal: ❌

(Last updated December 16, 2025)

Parents may receive tax credits for tuition payments and mandatory fees associated with students transferring to private schools.

(Last updated December 16, 2025)

View program requirements for parents, schools, and scholarship granting organizations by clicking on each hyperlink.

(Last updated December 16, 2025)

Ala. Code §§ 16-6D-8

(Last updated April 21, 2025)

Both state and federal challenges to this program were successfully defeated. 

On April 8, 2014, a U.S. District Court judge dismissed a claim brought by the Southern Poverty Law Center challenging the Alabama Accountability Act on grounds the school choice program violated equal protection C.M., et al., v. Robert J. Bentley, M.D. et al., 13 F.Supp.3d 1188 (N.D. Ala. 2014).   

On March 2, 2015, the Alabama Supreme Court ruled, in an 8-1 decision, that the Alabama Accountability Act enacted in 2013, which includes Alabama’s refundable tax credit and tax-credit scholarship program, is constitutional. The high court overturned a May 2014 lower court ruling by the Montgomery County Circuit court which initially struck down the Alabama Accountability Act. Magee v. Boyd, 175 So.3d 79 (Ala. 2015).  

(Last updated December 6, 2023)