Saturday, October 31, 2026
Latest:
Skip to main content

Alabama School Choice Options

Created On
Last Updated On
byR Gronkowsky

Alabama has two main school choice programs. First, the CHOOSE Act gives families education savings accounts, also called ESAs. Second, the Alabama Accountability Act funds private school scholarships through donor tax credits. The Alabama Department of Revenue oversees both programs. However, only the CHOOSE Act covers homeschool students. It provides $2,000 per homeschool student, up to $4,000 per family. Students at participating schools can receive $7,000. For 2026-27, household income could not exceed 300% of the federal poverty level. Starting with 2027-28, there is no income limit. Students must live in Alabama and be in grades K5 through 12.

Day to day, the CHOOSE Act works through an online platform called ClassWallet. Families pay approved providers directly from the account. The state does not repay families for purchases made on their own. You can find approved providers on the Department of Revenue website. Allowed uses include curriculum, tutoring, textbooks, testing, and some technology. Unused money goes back to the state at the end of each school year. The 2026-27 application window closed on March 31, 2026. The state says 2027-28 renewal details will come in early 2027. Meanwhile, Accountability Act scholarships help lower-income students attend private schools. For full details on each topic, open the sections below.

The Creating Hope and Opportunity for Our Students’ Education Act of 2024, or CHOOSE Act, became law in March 2024 (Act 2024-21 (HB129)). It offers refundable income tax credits that the state deposits into education savings accounts (ESAs).

  • Home education students: $2,000 per student, with a cap of $4,000 per family.
  • Students at a participating school: $7,000 per student.

The Legislature must put at least $100 million into the CHOOSE Act Fund each year, starting with the fiscal year ending September 30, 2026 (Act 2024-21 (HB129), Section 8).

Basic rules: The student must live in Alabama and be in grades K5 through 12. Under the program rules, an eligible student is 5 to 19 and has not graduated high school. Students who qualify under IDEA or Section 504 may take part until age 21 (Ala. Admin. Code ch. 810-28-1). For 2026-27, a kindergartener had to turn 5 by September 1, 2026 (2026-2027 Parent Guide).

Homeschool students: The rules say a participating student “includes a homeschool student, even if enrolled in a church school, homeschool co-op, or similar entity,” as long as the student is eligible (Ala. Admin. Code ch. 810-28-1, Rule 810-28-1-.01).

Income: For 2025 and 2026, household income could not exceed 300% of the federal poverty level for the prior tax year. For tax years starting on or after January 1, 2027, any parent of an eligible student may receive the credit (Ala. Admin. Code ch. 810-28-1, Rule 810-28-1-.02). The program site says there is no income requirement for 2027-28 and beyond (CHOOSE Act Alabama).

The 2026-27 income limits, based on 300% of the 2025 federal poverty level, were (2026-2027 Parent Guide):

  • Household of 1: $46,950
  • Household of 2: $63,450
  • Household of 3: $79,950
  • Household of 4: $96,450
  • Household of 5: $112,950
  • Household of 6: $129,450
  • Household of 7: $145,950
  • Household of 8: $162,450
  • Each additional person: add $16,500

Who is not eligible: The rules exclude students who receive Alabama Accountability Act scholarships or tax credits. They also exclude children enrolled in a private school, as defined in Ala. Code § 16-28-1, that is not a participating school, and children not lawfully present in the United States (Ala. Admin. Code ch. 810-28-1). If you homeschool under Alabama’s private school option, check with the Department of Revenue about how this rule applies to you.

Award priority: The first 500 credits are reserved for special-needs students. Next come current participants and their siblings. Then come children of active-duty service members who are enrolled in or assigned to a priority school. Remaining credits go by family income as a percentage of the federal poverty level (Ala. Admin. Code ch. 810-28-1, Rule 810-28-1-.02).

Families apply online through the program website, chooseact.alabama.gov. A new application asks for the student’s birth certificate and proof of Alabama residency. For income-based years, it also asks for proof of income (Ala. Admin. Code ch. 810-28-1, Rule 810-28-1-.03). Home education students do not need to name a participating school.

2026-27 school year (2026-2027 Family Application Timeline):

  • December 15, 2025 to March 31, 2026: renewal applications for current participants and added siblings.
  • January 2 to March 31, 2026: applications for new families.
  • Starting April 15, 2026: award notices sent by email.
  • Starting July 1, 2026: funds deposited into student accounts. Home education awards need no proof of enrollment.
  • July 1, 2026 to June 30, 2027: the period to use the funds.

Both 2026-27 portals are now closed. The Parent Guide says renewal details for 2027-28 will come in early 2027 (2026-2027 Parent Guide).

By law, qualifying expenses include tuition and fees at a participating school, textbooks, private tutoring, curricula and instructional materials, nonpublic online courses, educational software, standardized tests and test-prep courses, and services for students with disabilities (Ala. Admin. Code ch. 810-28-1, Rule 810-28-1-.01).

The rules and the 2026-2027 Parent Guide add some limits:

  • Computers: One laptop, desktop, or tablet up to $1,200 every two years per student. Gaming computers are not approved.
  • Technology aids: Items such as printers, ink, keyboards, and headphones, up to $500 per student each school year. 3D printers are not approved.
  • Materials: Must be for one student’s use. Bulk purchases are not allowed.
  • Subjects: Textbooks and online courses must fit approved subjects, such as math, English, science, social studies, religion, art, music, and foreign languages.

Expenses must be paid with the funds for the school year they relate to (2026-2027 Parent Guide).

Approved students receive a digital wallet in ClassWallet. Families must accept a program affidavit for each student before funds can be used (2026-2027 Parent Guide).

  • Payments go only to approved Education Service Providers (ESPs). The law does not allow program funds to be paid directly to a student or parent (Act 2024-21 (HB129), Section 6).
  • There is no reimbursement to families (2026-2027 Parent Guide).
  • For families with more than one home education student, only two student accounts show funds. However, the money can be used for all eligible students in the family. The total stays capped at $4,000 (2026-2027 Parent Guide).
  • At the end of each school year, unused funds go back to the CHOOSE Act Fund (Act 2024-21 (HB129), Section 6; 2026-2027 Family Application Timeline).

You can search approved providers on the Department of Revenue ESP list.

The Alabama Department of Revenue runs the program (The CHOOSE Act). ClassWallet manages the accounts.

The Alabama Accountability Act of 2013 lets nonprofit Scholarship Granting Organizations (SGOs) give scholarships to students. Donors to an approved SGO can claim a state tax credit (Ala. Code § 16-6D-9; Alabama Department of Revenue).

  • Amount: Up to $10,000 per student per school year for tuition and mandatory fees at a qualifying school (§ 16-6D-4).
  • Income: Family income may not exceed 250% of the federal poverty level. A student who has already received a scholarship stays eligible up to 350% (§ 16-6D-4).
  • Other rules: The student must live in Alabama. The student must also have been eligible for public school the prior semester or be starting school in Alabama for the first time (§ 16-6D-4).
  • Priority: SGOs must give priority to students zoned for failing schools (§ 16-6D-9).
  • Homeschool students: Not covered. The law says a nonpublic school “does not include home schooling” (§ 16-6D-4).

Families apply through an SGO, not the state. The Department of Revenue posts the list of qualified SGOs and participating schools on its Accountability Act page.

The Accountability Act also offers a refundable income tax credit to parents of students enrolled in or assigned to a priority school. The credit helps pay the cost of moving the student to a qualifying public or nonpublic school (Ala. Code § 16-6D-8).

  • Amount: The lesser of 80% of the average state cost per public school student or the actual tuition and mandatory fees.
  • Priority school: A public school designated as a priority school by the State Superintendent, or one that received a D or F on its latest state report card (§ 16-6D-4).
  • Homeschool students: Not covered, because home schooling is not a nonpublic school under this law (§ 16-6D-4).

Parents apply through the Department of Revenue (Alabama Accountability Act).

Choosing between programs: A student cannot receive CHOOSE Act funds while also receiving an Accountability Act scholarship or tax credit (Ala. Admin. Code ch. 810-28-1).

Testing: The CHOOSE Act requires participating schools to give their CHOOSE students an annual standardized test (Act 2024-21 (HB129), Section 5). The law places this duty on schools, not on home education families.

Homeschool law: School choice funds do not change how you homeschool legally. See our Alabama Homeschool Laws page for the church school, private school, and private tutor options.

Last reviewed: October 31, 2026

*The information on this page is for general use only. It should not be taken as legal advice. It is believed to be accurate however state and federal laws change every year. Homeschool.net recommends joining an organization such as the Home School Legal Defense Association before your homeschooling adventure begins. HSLDA can provide complete, accurate, legal advice and services for homeschooling families.

Update History

  • October 31, 2026
    • New law: Added CHOOSE Act ESA amounts, eligibility, dates, and payment rules (Act 2024-21 (HB129)).
    • Regulatory action: Added homeschool eligibility, exclusions, award priority, and expense limits from the Department of Revenue’s rules (Ala. Admin. Code ch. 810-28-1).
    • Editorial/clarification: Added Alabama Accountability Act scholarship and transfer tax credit summaries (§ 16-6D-4, § 16-6D-8, § 16-6D-9).
    • Editorial/clarification: Created this page with a summary, sources, and last-reviewed date.
Tags:
Table of Contents