Alabama Senators introduce Education Savings Accounts bill

MONTGOMERY, Ala. (WHNT) — A group of Alabama Senators introduced a new Education Savings Account measure Tuesday afternoon, shortly before Gov. Kay Ivey was set to deliver her State of the State speech which is expected to highlight the proposal.

Known as the CHOOSE Act Tax Credit, the measure would set aside $100 million in a new state account for families to create tax-free education savings accounts.

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Senate Bill 62 says, “The annual amount of the credit would be capped at $7,000 for participating students enrolled in a participating school. For participating students not enrolled in a participating school, the annual amount of the credit would be capped at $2,000, with a cap of $4,000 cap for the family.”

The measure rolls in potential students over a three-year period, starting in 2025. The first two years are focused on students in families whose adjusted gross income does not exceed 300 percent of the poverty rate, around $93,000 for a family of four, according to federal government figures. Beginning in 2027, the credit would be open to “any parent of an eligible student.”

Participating schools include public K-12 schools and an accredited private school, “including church, parochial, or religious school that provide K-12 education is approved by the department (of education).”

The bill also says the school must be accredited or in the “process of obtaining accreditation as determined by the department, by one of the six regional accrediting agencies or the National Council for Private School Accreditation, AdvancED, the American Association of Christian Schools, or one of their partner accrediting agencies.”

The bill also spells out where the money can be spent:

• Tuition and fees at a participating school

• Textbooks

• Fees for after-school or summer education programs provided by a participating school

• Private tutoring

• Curricula or instructional materials

• Tuition and fees for nonpublic online learning programs

• Educational software and applications

Fees for standardized and nationally recognized assessments, including college admissions tests and advanced placement examinations and related preparatory courses;

Education services for students with disabilities from a licensed or accredited practitioner or education service provider;

Contracted services provided by a public school district including specific classroom instruction.

You can read the entire text of the bill here.

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