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. Parents can access funds for qualifying expenses such as tuition, textbooks, and tutoring, with the Alabama Department of Revenue overseeing the program's administration and compliance. The act defines key terms and sets eligibility criteria, including income limits for tax credits, which will be available to families earning up to 300% of the federal poverty level for the years 2025 and 2026, and expands to all eligible families from 2027 onwards. Special provisions are included to prioritize tax credits for special-needs students and their siblings, and the credits will not be considered taxable income.

The bill also establishes the CHOOSE Act Fund within the State Treasury, requiring a minimum appropriation of $100 million starting from the fiscal year ending September 30, 2026, with potential increases based on demand. It outlines the responsibilities of education service providers and participating schools, including compliance with health and safety laws and the administration of standardized assessments. The Department of Revenue is empowered to prevent fraud, manage the distribution of funds, and ensure compliance with federal privacy laws. Notably, any excess funds exceeding $500 million at the end of the year will revert to the Education Trust Fund, and the act allows parents and students to intervene in legal challenges regarding its constitutionality. The bill is set to take effect immediately upon passage and approval by the Governor.