Alabama Educational Scholarship Program
Alabama’s Educational Scholarship Program provides tax credits to businesses that donate to approved Scholarship Granting Organizations (SGOs). This initiative relies on these business contributions to fund the program’s scholarships. Alabama families can then use the scholarships for private school tuition.
Program Type: Tax-Credit Scholarship (funded through private donations via Scholarship Granting Organizations)
What It Supports: Private school tuition and mandatory fees for K-12 students.
Who It Generally Serves: K-12 students whose household income does not exceed 250% of the federal poverty level (approximately $78,875 for a family of four in 2025). Priority is given to students assigned to “priority schools” (D or F grade on state report card) and students with special needs. Once enrolled, families may remain eligible if income stays below 350% FPL.
Funding Amount:
- Average: $5,907 per student (based on 2023-24 data)
- Maximum: $10,000 per student per year
How Families Access: SGOs receive donations from individuals and businesses who claim dollar-for-dollar Alabama income tax credits. Families then apply directly to certified Scholarship Granting Organizations (SGOs), not the state. The program has an annual cap of $40 million in tax credits (with automatic escalator provisions to increase to $60 million if utilization exceeds 90%).
Approved SGOs (as of November 2025):
- Scholarships for Kids, Inc. (Birmingham)
- Alabama Opportunity Scholarship Fund (Birmingham)
- Rocket City Scholarship Granting Organization, Inc. (Huntsville)
- Children’s Tuition Fund of Alabama (ACSI)
- Renaissance Scholarships, Inc. (Birmingham)
- C2 Opportunity Scholarships LLC (Birmingham)
- Deontaye V. Caple Scholarship (Phenix City)
- Arete Scholars Fund, Inc. (Suwanee, GA)