Alabama Tax Credits

Did you know only 30% of Alabama third graders and 25% of eighth graders read at grade level? That's unacceptable in America. But you can help open doors to better education opportunities for our kids.

Through a dollar-for-dollar tax credit program, you can support students in Alabama who otherwise lack access to the educational environment best suited to their learning needs.

The Alabama Accountability Act allows individuals and businesses to direct 100% of their state income tax liability to support education through Arete Scholars. We use your tax credit donations to award scholarships that empower underserved students to attend K-12 schools where they can learn, grow, and succeed.

Individuals can donate 100% of their Alabama income tax liability up to $100,000.

C corporations, S corporations, LLCs, partnerships, and pass-through entities can donate 100% of their income tax liability.

  • How do I reserve an Alabama Tax Credit?

    Step 1. Estimate your state tax liability.

    Step 2. Sign in to your account at  MyAlabamaTaxes.gov (MAT)

    Step 3. Report a donation

      - Once signed in, scroll down until you see the “Tax Incentives” section.
      - Next, select “Manage tax incentives.”
      - Next, click the option for “Scholarship Granting Organization Tax Credit.”
      - Finally, click “Report a donation to an SGO” to make your reservation.

    Step 4. Choose Arete Scholars as your SGO

      - Enter your personal information
      - Enter your reservation amount.
      - Select “Arete Scholars” from the “SGO Name” drop-down list.
      - Print your confirmation screen.

    Step 4. Make your Donation

      - Donations must be mailed to Arete Scholars within 30 Days of the reservation.

      Arete Scholars Fund 
      500 Buford Hwy NE 
      Suite 1001 #1020 
      Suwanee, GA 30024


    Step 6. Arete Scholars Will Verify Your Donation

  • How do I create a new account at MyAlabamaTaxes.gov (MAT)?

    To create an account, you'll need the following:

    - Your Social Security Number or EIN# for businesses
    - Your Alabama Adjusted Gross Income (AGI) from your previous year's state tax return (or two years prior). Your federal AGI will not work.

     

    Step 1: Go to myalabamataxes.alabama.gov

    Step 2: On the MAT homepage, click on "New User? Sign up here." below the login box.

    Step 3: Select the account type from the drop-down list.

    CORPORATIONS 
    - Select "Business Income Tax"
    - Add your employer identification number and your Alabama AGI from your previous year's state tax return, then select "Validate."

    INDIVIDUALS
    - Select "Individual Income Tax"
    - Add your social security number and your Alabama AGI from your previous year's state tax return, then select "Validate."


    Step 4: Create a username, password, and secret question/answer.

    Step 5: Enter your personal contact information.

    Step 6: Choose to allow third party access or not.

    Step 7: A print/save confirmation screen will appear. Please print for your records and make a note of your username

Every tax credit donation to Arete Scholars helps a child attend a school where they feel safe, supported, and inspired to succeed. Make your tax-credit gift today and give a child the chance to thrive.