The CHOOSE Act, or the Creating Hope and Opportunity for Our Students’ Education Act of 2024, introduces a refundable income tax credit and establishes education savings accounts (ESAs) to support educational expenses for eligible students. The bill outlines qualifying expenses such as tuition, textbooks, and tutoring, and assigns the Alabama Department of Revenue the responsibility for program administration, compliance, and fraud prevention. It defines key terms and sets income-based eligibility criteria for tax credits, prioritizing special-needs students and their siblings. The act also requires parents to accept certain conditions, including financial responsibility for educational expenses and adherence to departmental regulations.

Furthermore, the bill establishes the CHOOSE Act Fund within the State Treasury, mandating a minimum appropriation of $100 million starting in the fiscal year ending September 30, 2026, with potential increases based on demand. It includes provisions for the approval and operation of education service providers and participating schools, emphasizing compliance with health, safety, and non-discrimination laws. The legislation grants the department powers to combat fraud, including the ability to suspend providers and recapture misused funds. The act is designed to ensure transparency and flexibility while maintaining compliance with existing laws, and it is set to take effect immediately upon passage and approval by the Governor.