Alabama's Complete Guide to ESA Funds

The Creating Hope and Opportunity for Our Students' Education Act of 2024 (CHOOSE Act) gives Alabama parents refundable income tax credits, held as Education Savings Accounts (ESAs), to pay for tuition, tutoring, curriculum, educational therapies, and other approved expenses.

It is administered by the Alabama Department of Revenue (ALDOR), with applications processed through FACTS Management and funds distributed via ClassWallet.

Eligible Alabama families receive:

$7,000 per student enrolled in a participating school
$2,000 per student in a home education program (capped at $4,000 per family)

The 2026-2027 application window has now closed.

For the most up-to-date application timelines for 2027-2028, families should monitor the Alabama Department of Revenue CHOOSE Act page.

Eligibility

Eligibility requirements for the ESA in Alabama

To be eligible for an education savings account (ESA) in Alabama, students must meet three requirements:

In grades K–12 (kindergartners must turn 5 by September 1 of the school year)
A resident of Alabama
Lawfully present in the United States

There is no household income requirement from 2027-28.

For renewing families on the 2026-2027 cycle, household income must be at or below 300% of the federal poverty level for the 2025 tax year.

Application

The ESA application process in Alabama

Parent content · 30-second eligibility quiz

Want the rest of the Alabama ESA guide?

Take a 30-second eligibility quiz and we'll unlock the full guide — including deadlines, spending rules, and how to pay with your ESA.

Priority order for ESA awards

First 500 ESAs are reserved for students with special needs (qualifying under IDEA or Section 504)

Then participating students from the prior year (renewals) and their siblings

Then dependents of active-duty service members enrolled in a 'priority school' (a public school with a D or F on its most recent ALSDE report card)

Required documentation

Proof of Alabama residency (tax return, driver's license, utility bill, lease, mortgage statement, or voter registration)

Proof of guardianship (tax return, birth certificate, adoption records, or guardianship petition)

For special-needs priority: documentation of IDEA / Section 504 eligibility

For active-duty military priority: applicable service documentation

Using Your Funds

How to spend ESA funds and what they can be spent on

ESA funds can be spent on:

Tuition and fees at a participating school
Private tutoring (in-person or online) in approved subjects including Mathematics, English, Science, Social Studies, Foreign Languages, Art, Music, and Religion
Tuition and fees for an approved nonpublic K-12 online learning program — including test preparation for AP, SAT, and ACT
Textbooks, curriculum, and supplemental reading materials
Instructional materials and school supplies
Computers under $1,200 per student (one every two years)
Technological aids (annual cap of $500 per student)
Educational software and applications
Educational therapies for students with disabilities
Standardized assessment fees, including SAT, ACT, and AP exams
After-school or summer education programs at a participating school
Contracted services from a public school district

ESA Alabama rules and regulations

All payments must go through the ClassWallet platform. There is no reimbursement to families.
Funds can only be spent at approved Education Service Providers (ESPs) registered with ALDOR.
Parents cannot receive payment as ESPs for services provided to their own child.
Private tutors must be accredited, have a bachelor's degree, or hold state certification — plus pass a background check.
Unused funds do not roll over. Any balance at year-end returns to the CHOOSE Act Fund.
Renewal is required annually.
A student cannot receive both a CHOOSE Act ESA and an Alabama Opportunity Scholarship Fund (AOSF) award.

MyEdSpace

How to use your ESA funds with MyEdSpace

Thanks to our expert teachers, world-class resources, and proven record of success, MyEdSpace is an approved Education Service Provider in Alabama — meaning families can use their CHOOSE Act ESA funds directly for live, online math instruction.

Your ESA funds can be used with MyEdSpace to give your child access to top US teachers via live, online math lessons. Plus all this:

2x live weekly lessons with expert math teacher Eddie Kang
Every live lesson recorded and available to re-watch whenever and wherever, 24/7
Bespoke workbooks for every lesson
Targeted practice questions to reinforce knowledge
Step-by-step video explanations for every topic
24/7 Math Coach for support between lessons

How to use your Alabama CHOOSE Act ESA funds with MyEdSpace — live online math classes with expert teachers

To use your funds with MyEdSpace, follow these simple steps:

1.Contact MyEdSpace to receive an approved invoice
2.Log in to your ClassWallet account
3.Click the Pay Vendor button
4.Add your order details, ensuring the amount matches your invoice exactly
5.Upload the invoice and select Tutoring as the expense category
6.Select the student account to draw funds from, then review and submit

Once payment is approved, we'll email you your MyEdSpace login details. And that's it.

Keep Reading

Related Guides

New Hampshire ESA

A complete guide to New Hampshire's Education Freedom Account

Everything you need to know about New Hampshire's Education Freedom Account — eligibility, application process, and how to use your funds with MyEdSpace.

Read guide →North Carolina ESA

A complete guide to North Carolina's ESA+ scholarship

Everything you need to know about North Carolina's Opportunity Scholarship — eligibility, application process, and how to use your funds with MyEdSpace.