Tax Credits

14212033_727034597437092_3287632214550798206_nThe Alabama Accountability Act
UNOFFICIAL At A Glance

What is the Alabama Accountability Act?

The AAA (passed by the state legislature in 2013) provides a tax credit to individuals and organizations who contribute to a Scholarship Granting Organization such as RocketSGO – Huntsville’s first and only SGO!  

How do I receive the tax credit?

Donors may register with the Alabama Department of Revenue website and reserve their tax credit.  (Each calendar year, there are $30 million dollars available to be distributed.  Once the money is used up, individuals do not have the option to receive a tax credit.)  Then, the donor simply needs to provide a check to the scholarship granting organization of their choice.  

How much will my tax credit be?

You can receive a refundable tax credit for your entire donation, with a maximum of either $50,000 or half of your total Alabama income tax liability, whichever is less.

What will the SGO do with my donation/tax credit?

These funds are used to grant scholarships to students in failing Title 1 schools so that they may attend a qualified private school.  Families apply directly with the SGO for their children to receive a scholarship, and the SGOs select recipients to receive the scholarships.  

Sign up to receive tax credit or for more information, visit:  http://revenue.alabama.gov/accountability/  or ask your CPA about the AAA!