DOTHAN, Ala (WDHN) — Gov. Ivey announced Friday that she signed an executive order that confirms Alabama’s participation in a program that gives tax incentives to those who donate to approved scholarship organizations.
Ivey’s order confirms that Alabama will take part in the Federal Education Freedom Tax Credit Program, also known as the Federal Scholarship Tax Credit.
For over a decade, Alabama has been a trailblazer in offering parents and students options to access and afford the best quality education, and soon our families will have even more resources,” said Governor Ivey.
This program will give benefits similar to the 2013 Alabama Accountability Act.
“Beginning with the Alabama Accountability Act passed in 2013, many qualifying students have benefited from scholarships allowing them to move to a better performing school. Two years ago, I championed and signed Alabama’s universal school choice law, the CHOOSE Act, which provides families with refundable income tax credits for qualifying educational expenses, including tuition, textbooks and after-school programs. And, today, I proudly signed an executive order to further expand Alabama school choice funding options by allowing qualified Alabama families to participate in the Federal Education Freedom Tax Credit program.”
This federal program, enacted by the “Big Beautiful Bill” Act, offers tax credits for donations to approved organizations that grant scholarships. These organizations use those funds to grant scholarships to elementary and secondary students. Scholarship funds can be used for tuition, books, fees, supplies, tutoring and special needs at both public, private, and religious schools.
The Federal Education Freedom Tax Credit program will take effect in January 2027.