The CHOOSE Act is a bill designed to provide a refundable income tax credit to assist with the cost of educational expenses for eligible students through the creation of education savings accounts (ESAs). The bill sets the tax credit at $7,000 or the actual cost of qualifying educational expenses for students enrolled in a participating school, and $2,000 or the actual cost, up to $4,000 for multiple students in a family, for those not enrolled in a participating school. The credit is available to families with income not exceeding 300 percent of the federal poverty level, starting January 1, 2025. The bill prioritizes tax credit allocation based on certain criteria and establishes the CHOOSE Act fund with a minimum appropriation of $100 million, while also ensuring that the tax credits are not treated as taxable income.

HB129 Enrolled details the requirements for education service providers and participating schools, including the submission of information, compliance with various laws, and the prohibition of discrimination. It grants public schools acting as education service providers maximum flexibility and mandates that resident school districts provide complete student records to participating schools or education service providers. The Alabama Department of Revenue is responsible for administering the ESAs, including application processing and establishing payment systems. The bill also includes measures to prevent and address fraud, such as authorizing the department to investigate reports of fraud and recapture misused funds. The bill notes an insertion of amendments and passage by the Senate on March 6, 2024, and concurrence in the Senate Amendment by the House on the same date.