The bill amends Sections 16-6J-8 and 40-18-15.8 of the Code of Alabama 1975, focusing on the funding provisions of the CHOOSE Act credits and extending the income tax deduction for contributions to Alabama Achieving a Better Life Experience (ABLE) savings accounts. Notably, the bill mandates that the Commissioner of Revenue deposit $100 million into the CHOOSE Act Fund by June 1, 2026, and subsequently, an amount not exceeding $150 million annually for eligible families. The bill also stipulates that if the funds in the CHOOSE Act Fund exceed $500 million, the excess will revert to the Education Trust Fund for legislative appropriation.

Additionally, the bill extends the sunset date for the income tax deduction for contributions to ABLE accounts to December 31, 2030, replacing the previous sunset date of December 31, 2025. The new language clarifies that the deduction cannot be claimed for tax years beginning after the new sunset date. The act is set to take effect on June 1, 2025.

Statutes affected:
Introduced: 40-18-15, 40-18-15
Enrolled: 16-6J-8, 40-18-15