Alabama CHOOSE Act: Eligibility, Income Limits & Expenses

Income limits depend on the academic year

For 2026–27, Alabama publishes a family adjusted gross income limit of 300% of the federal poverty level for the preceding tax year, with award priorities. This is not the area-median-income measure used by the new federal scholarship law. The Department of Revenue separately publishes the 2027–28 priority rules; use that year’s official instructions rather than carrying an older income cutoff forward.

The home-education award has a family cap

CHOOSE distinguishes up to $7,000 for a participating-school student from up to $2,000 for home education, capped at $4,000 per family. The 2026–27 application portal closed March 31, 2026. Confirm an actual award and its available balance before planning purchases; do not multiply the private-school headline amount by homeschooled children.

Families purchase through ClassWallet, without reimbursement

The 2026–27 parent guide says all payments and purchases use ClassWallet and there is no reimbursement to families. Use the integrated marketplace or Pay Vendor with the required invoice. Confirm provider participation and the exact expense; a seller’s registration for another ClassWallet program does not establish CHOOSE approval.

Plan computers, digital pencils and course access separately

The 2026–27 guide sets a $1,200 computer limit for one item every two academic years per participating student; the item list specifies computers under $1,200. It separately lists “Apple Pen” among technological aids and educational software/applications by subject. Items must meet the student’s educational needs and program review. Keep the equipment and course price, duration and category explicit.

Alabama CHOOSE Act

The CHOOSE Act provides refundable education savings account tax credits for approved education expenses, with separate participating-school and home-education amounts.

Program sources reviewed September 23, 2026

Who can qualify

For 2026–27, the income limit is 300% of the federal poverty level. Priority groups and the rules for future years differ; use the Department of Revenue guidance for the application year.

Award and budget

$7,000 per eligible student at a participating school, or $2,000 for home education, capped at $4,000 per family for home education.

How home education fits

Home education has its own award category. A family should not budget using the larger participating-school amount.

Curriculum and permitted expenses

The 2026–27 parent guide lists curriculum, educational software/applications, computers and technological aids subject to the program’s conditions. Computer purchases have a $1,200 limit for one item every two academic years per participating student; the item list says “under $1,200.” All payments use ClassWallet; there is no reimbursement to families.

Applying and using funds

The 2026–27 application period closed March 31, 2026. Use the official CHOOSE site for account instructions and the next published application window.

• Alabama Department of Revenue: CHOOSE eligibility and awards
• CHOOSE Act parent guide 2026–27
• Alabama: searchable education service providers

Alabama Accountability Act scholarships

The Alabama Accountability Act has its own qualified scholarship granting organizations. This tuition-scholarship route is separate from CHOOSE Act accounts and from the federal scholarship program starting in 2027.

Alabama Department of Revenue: qualified SGOs. Our SGO guide explains what to check before applying.

Federal scholarships starting in 2027

Alabama has made an advance election to participate in the Education Freedom Tax Credit (also called the Federal Scholarship Tax Credit) for 2027. The Education Freedom Tax Credit (EFTC/FSTC) is separate from the state options above. ECCA refers to its earlier legislative proposal.

IRS participation list, as of 2026-09-14: advance election recorded. An advance election does not establish an approved SGO list, an open student application or an awarded scholarship. Check the Education Freedom Tax Credit guide and how to find an SGO for the next steps.

Is CHOOSE the same amount for home education and private school?

No. The 2026–27 home-education option is up to $2,000 per participating student, capped at $4,000 per family. The participating-school maximum is different.

Can I buy curriculum myself and request CHOOSE reimbursement?

The 2026–27 guide says there is no reimbursement to families. Purchases and provider payments must use the authorized ClassWallet process.

Are CHOOSE and Alabama’s SGO scholarships the same program?

No. CHOOSE accounts, Alabama Accountability Act SGO scholarships and federal Section 25F scholarships have separate rules. Identify the exact program before using an application, income limit or purchase guide.

Can Alabama homeschool families use these options?

Home-education families can use the CHOOSE route if they meet the relevant year’s rules. The home-education family cap is especially important when planning materials for siblings. Keep eligible curriculum purchases and the student’s award records together.