Alabama
Opted in on January 16, 2026
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Kay Ivey
Governor , R
“For over a decade, Alabama has been a trailblazer in offering parents and students options to access and afford the best quality education, and soon our families will have even more resources.”
Governor Kay Ivey, January 16, 2026 (Governor's Office press release)
EFTC Status in Alabama
Governor Kay Ivey signed Executive Order No. 742 on January 16, 2026, confirming Alabama's participation in the Education Freedom Tax Credit program.
Great news!
Alabama has opted in to the Education Freedom Tax Credit.
Executive Order No. 742; Alabama Department of Revenue designated to administer the program and certify eligible SGOs.
EFTC Readiness Checklist for Alabama Schools
Alabama has opted in to the EFTC. Use this 7-step checklist to prepare your school for participation.
Confirm Eligibility
Verify your school is an eligible K-12 institution (private, religious, or homeschool cooperative) under EFTC program rules.
Identify SGOs
Research which Scholarship Granting Organizations operate in Alabama. Contact them to understand application processes and timelines.
Estimate Family Eligibility
Use the EFTC Income Eligibility Calculator to estimate how many of your families fall within the 300% median income threshold.
Open CalculatorPrepare Documentation
Gather documentation of qualifying educational expenses: tuition, fees, tutoring, curriculum materials, and educational therapy costs.
Designate a Coordinator
Assign an EFTC coordinator to manage scholarship applications, SGO partnerships, and family communications.
Develop Communication Plan
Create materials to inform families about EFTC eligibility, the application process, and covered expenses. Plan for information sessions and one-on-one support.
Build SGO Relationships
Establish relationships with at least one SGO before the application window opens. Understand their requirements, reporting expectations, and disbursement timelines.
Recent News
On June 8, 2026, the IRS announced in release IR-2026-76 that 27 states, including Alabama, had elected to participate in the new federal scholarship tax credit program created by the One Big Beautiful Bill, formalizing the participation Governor Kay Ivey established by executive order in January 2026. States opt in by filing IRS Form 15714, and beginning January 1, 2027 donors may claim a federal credit of up to $1,700 for contributions to qualified scholarship granting organizations.
· Internal Revenue Service (IR-2026-76)
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