Refundable tax credit for private school tuition created

Source: EdChoice blog, Jan 2014

When Alabama joined the school choice “family” in 2013, it did so in dramatic fashion, passing two tax-credit programs, one of which is the country’s first refundable tax credit for private school tuition.

Under the Alabama Accountability Act of 2013, parents can receive a tax credit worth the lesser of (1) 80 percent of the average annual state cost of attending a K-12 public school or (2) their students’ actual cost of attending the choice school. If the taxes owed by the parents are less than the total credit allowed, they may receive a rebate equal to the balance of the unused credit, giving low-income families the power to choose.

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