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Bill

HB 52

Income Taxes; to make technical changes to the funding provisions of the CHOOSE Act credits and increase funding, and to extend the sunset date for deductions for ABLE contributions.

2025 Regular Session Introduced by Danny Garrett

Alabama expands education savings account funding and extends tax deductions for disability savings accounts, reducing state income tax revenue.

Delivered to Governor
#taxation&revenue
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Bill Summary · HB 52

Legislative bill overview

HB 52 makes technical adjustments to Alabama's CHOOSE Act tax credit program (which provides education savings accounts for K-12 students), increases its funding allocation, and extends the tax deduction sunset date for contributions to ABLE accounts (tax-advantaged savings accounts for individuals with disabilities). The bill addresses administrative details and extends tax benefits that were previously set to expire.

Why is this important

The CHOOSE Act is a significant education funding mechanism in Alabama that affects thousands of families' ability to access alternative schooling options. ABLE account deductions directly benefit individuals with disabilities and their families by allowing continued tax-advantaged savings. These changes represent ongoing state commitment to these programs and their fiscal sustainability.

Potential points of contention

  • Cost to state revenue: Increasing CHOOSE Act funding and extending ABLE deductions both reduce income tax collections, raising questions about how the state will offset this lost revenue or whether it conflicts with other budget priorities
  • Education funding philosophy: The expansion of education savings accounts may draw resources away from traditional public school funding, depending on overall budget allocation decisions
  • Beneficiary demographics: ABLE accounts and education savings accounts may disproportionately benefit higher-income families with resources to navigate these programs, raising equity concerns

Compiled from official sources — confirm details with the bill’s official record.

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