Alabama Scholarship Granting Organizations
9 SGOs listed · 2 accepting students · 9 accepting donors
Am I eligible?
Your child may qualify through Alabama's Education Scholarship Program if:
- Family income below 250% of the federal poverty level (approximately $78,000 for a family of four). Once awarded, eligibility continues up to 350% FPL (approximately $109,200).
- IEP or Section 504 plan — qualifies regardless of income
- Kindergartners and first graders — automatically eligible
- Priority placement for students zoned for D- or F-rated schools on the state report card
How much can my child receive?
Up to $10,000 per student per year for grades K-12.
- Tuition and mandatory fees at a qualifying nonpublic school
- IEP/504 students can also use funds for textbooks, tutoring, curriculum materials, online learning, educational therapies, and contracted services from a public school district
Awards are based on financial need and may be less than the maximum (average award: $5,907 in 2023-24).
How to apply
- Choose an SGO — browse the SGOs listed on this page
- Apply directly through your chosen SGO — each has its own process and timeline
- Select a qualifying nonpublic school that participates in the program
- January 1: Schools on the priority list must notify parents of priority school status (January 16 for the 2026-27 cycle)
- March 1: Notice of Transfer deadline — submit to your local superintendent for the upcoming school year
- Varies by SGO: Application deadlines differ — apply early, as many SGOs award on a first-come, first-served basis
How the tax credit works
Alabama offers a 100% dollar-for-dollar state income tax credit for donations to approved SGOs.
- Individuals: Credit up to 100% of your Alabama income tax liability, capped at $100,000/year
- C-corporations: Credit up to 100% of tax liability with no dollar cap
- Pass-through entities: Credits flow through to shareholders, partners, or members
- Carry forward: Unused credits exceeding 50% of the year's tax liability roll forward up to 3 years
How to donate
- Reserve your tax credit through the Alabama Department of Revenue's My Alabama Taxes (MAT) portal
- Choose an SGO from the list on this page
- Make your donation within 30 days of reservation approval
- Claim the credit on your Alabama state income tax return
Program impact
Alabama's program has supported thousands of students since 2015-16, with strong growth after the 2022 and 2023 legislative expansions.
| Year | Students | Total Payouts | Avg. Scholarship |
|---|---|---|---|
| 2015-16 | 4,000+ | $14.4M–$26.8M | $4,899 |
| 2022-23 | 2,900 | $19.7M | — |
| 2023-24 | 3,600 | $25.8M | $5,907 |
2,000+ students remain on SGO waiting lists. Your donation directly funds a student who is waiting.
- First-come, first-served: Reserve credits via the MAT portal — no fixed deadline, but act before the $40M cap fills
- 30 days: Donation deadline after your reservation is approved
- January 10: Year-end donations to Renaissance Scholarships must be received by this date
- 3-year carry forward: Unused credits roll forward automatically
Alabama has opted in to the federal scholarship tax credit program created by the One Big Beautiful Bill Act. Starting January 1, 2027, donors can also claim a federal tax credit of up to $1,700 ($3,400 for married filing jointly) for donations to qualifying Alabama SGOs. This federal credit is separate from Alabama's 100% state tax credit — eligible donors may be able to claim both on the same donation.
Resources for Alabama
The Federal Tax Credit Scholarship Program: What You Need to Know
A clear explainer on the new federal tax credit for donations to Scholarship Granting Organizations — how it works, who qualifies, and what it means for families, donors, and SGOs starting in 2027.
What Is a Scholarship Granting Organization (SGO)?
A comprehensive guide to SGOs — what they are, how they work, and how they connect donors, families, and K-12 schools through tax-credit scholarship programs.
Resources for Alabama
The Federal Tax Credit Scholarship Program: What You Need to Know
A clear explainer on the new federal tax credit for donations to Scholarship Granting Organizations — how it works, who qualifies, and what it means for families, donors, and SGOs starting in 2027.
What Is a Scholarship Granting Organization (SGO)?
A comprehensive guide to SGOs — what they are, how they work, and how they connect donors, families, and K-12 schools through tax-credit scholarship programs.
Guide last updated February 27, 2026
Federal Tax Credit Scholarship Program
Opted InAlabama has opted in to the federal scholarship tax credit program created by the One Big Beautiful Bill Act (signed July 4, 2025). Starting January 1, 2027, taxpayers who donate to qualifying SGOs in Alabama can claim a federal tax credit of up to $1,700 (or $3,400 for married filing jointly).
This federal credit is separate from Alabama's state tax credit program. Eligible donors may be able to claim both credits on the same donation.
SGOs in Alabama
Alabama Opportunity Scholarship Fund
Birmingham, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
C2 Opportunity Scholarships LLC
Birmingham, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
Scholarships for Kids, Inc.
Birmingham, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
Rocket City Scholarship Granting Organization, Inc.
Huntsville, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
Arete Scholars Fund, Inc.
Suwanee, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
Children’s Tuition Fund of Alabama (ACSI)
Colorado Springs, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
Renaissance Scholarships, Inc.
Birmingham, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
Deontaye V. Caple Scholarship
Phenix City, AL
This organization is listed by the Alabama Department of Revenue as a qualified Scholarship Granting Organization under the Accountability Act program. Publicly available official roster information confirms it may participate in Alabama's tax-credit scholarship framework for eligible students seeking nonpublic K-12 options.
A.A.A. Scholarship Foundation - AL
Tampa, AL
Program Details
- Program name
- Education Scholarship Program
- Tax credit
- 100% of donation
100% tax credit in Alabama
Donations to Alabama SGOs qualify for a 100% state income tax credit.
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