Tax Credits

Tax Credits
The 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.

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Rocket City SGO Tax Credits (PDF Download)
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!

Claiming your Alabama State Income Tax Credit (PDF)