Alabama Expands School Choice Program

Alabama Governor Kay Ivey has signed into law a key improvement to the state’s tax credit scholarship program, increasing the cap on individual and corporate tax credits for gifts given to the state’s tax credit scholarship program. The contribution limit change will likely increase the total amount of scholarship funds available to Alabama students. 

Alabama legislators passed the measure in the last days of the state’s 2022 legislative session.

The bill was sponsored by Senators Dan Roberts, Del Marsh, and Sam Givhan. Retiring this year, Senator Marsh is a longtime champion of education reform, sponsoring nearly every school choice bill of the last decade. His leadership and dedication to improving education in Alabama will be missed.

Statement from Tommy Schultz, CEO of the American Federation for Children:

“Alabama lawmakers took an important step toward making a high-quality education accessible to more children in the state, and we are grateful to the Governor for signing the bill into law. While we have reason to celebrate, more must be done to support school choice in a state that consistently ranks near the bottom in education. 

I am confident the voices of parents will be heard throughout the following months—particularly at the ballot box—telling Alabama legislators they should make additional investments in school choice next session.” 


Details: 

Tax credit scholarship program
Increases the individual giving cap from 50% to 100% of income tax liability – up to 100k
Increases corporate giving cap from 50% to 100% of income tax liability