If you told an Alabama business owner there was a way to redirect state income tax dollars they already owe into scholarships for Alabama students — at no additional cost — you’d probably expect the opportunity to disappear quickly.
That’s exactly what happens in Georgia.
Each January, taxpayers race to reserve the state’s Qualified Education Expense Tax Credit. In 2026, taxpayers requested nearly $246 million in education tax credits on the first business day of the year, even though the state had authorized just $120 million. Within days, every available credit had been claimed, and applicants received less than half of what they requested. The shortage wasn’t generosity. It was supply. The state simply ran out of available tax credits.
Now compare that with Alabama.
Nearly nine months into 2026, approximately $38 million in Alabama Accountability Act tax credits remain available for eligible taxpayers. At the same time, scholarship-granting organizations continue working to meet the needs of Alabama families seeking educational options.
That’s a striking contrast.
It would be easy to conclude that Alabama businesses simply aren’t interested. I don’t believe that’s true.
In conversations with business owners, accountants and financial advisors, I hear something different. Many are surprised to learn the tax credit program still exists. Others assume it was replaced when Alabama passed the Choose Act.
It wasn’t. The Alabama Accountability Act scholarship program and the Choose Act are separate laws designed to accomplish different goals.
Under the Alabama Accountability Act, eligible taxpayers can receive a dollar-for-dollar state income tax credit for contributions to scholarship-granting organizations, which use those contributions to provide scholarships to qualifying students. The Choose Act, by contrast, created education savings accounts that allow eligible families to use state funds for approved education expenses.
One did not replace the other.
And that distinction matters, particularly for Alabama’s business community.
Every year, business leaders make strategic decisions about taxes, charitable giving and community investment. The Alabama Accountability Act is one of the few opportunities where those decisions intersect. Eligible businesses can receive a dollar-for-dollar state tax credit while directing a portion of their tax liability toward scholarships for Alabama students. That’s not simply a charitable contribution. It’s a tax-planning decision with a community impact.
Every unused tax credit represents an opportunity missed for businesses to directly impact their communities through their tax dollars.
When Alabama businesses understand the opportunity, I believe they will participate.
The Georgia business community has proven that. Now Alabama has the chance to do the same.
Sherri Rowton is director of development for the Alabama Opportunity Scholarship Fund.
