Current through Register Vol. 42, No. 11, August 30, 2024
(1)
Scope. This rule is issued pursuant to Section
16-6D-1,
Code of Ala. 1975, to provide guidance to parents with
students who transfer to a new school and are notified that the new school is a
failing public school for purposes of the Alabama Accountability Act (Act
2013-64). These parents may be eligible for a refundable income tax credit to
offset the costs of subsequently transferring a student to a non-failing public
school or nonpublic school of the parent's choice if certain conditions are
met.
(2) General rule. When
determining whether a student's parents are eligible to claim the parent's tax
credit, the Department will consider substance over form when determining
whether a bona fide transfer away from a failing school to a non-public school
occurred so that the parent is eligible for the tax credit addressed within
this rule.
(a) If a student currently attends
a non-failing public school or nonpublic school and subsequently transfers to a
failing public school, the student's transfer to the failing public school must
meet the requirements for a bona fide transfer before the student's parents may
transfer the student to a non-failing school of the parent's choice and be
eligible to apply for the parent tax credit.
(b) For purposes of this rule, a bona fide
transfer requires a student to remain in the school in which he or she
transfers to, for a minimum of one semester, or 90 school days. A student who
first transfers away from a non-failing public school or nonpublic school to a
failing public school and subsequently transfers away from the failing public
school after having attended for any period of time less than one school
semester or 90 school days, whichever is shorter, shall not be considered as
having been part of a bona fide transfer and the student's parents shall not be
eligible for the credit.
(3) Exceptions. There are certain instances
where a student assigned to attend a failing public school may not need to
enroll and attend the failing public school before the parent(s) are eligible
to apply for the parent tax credit upon enrolling the student in a different
non-failing public school or nonpublic school.
(a) A parent whose student is rising to
kindergarten and has been notified by the local school system that the student
is assigned to a failing public school may choose to enroll the rising
kindergartener in a non-failing public school or nonpublic school and still be
eligible to claim the parent tax credit even if the student never attends the
failing school to which he or she is assigned.
(b) A parent whose student has completed the
highest grade level offered at the student's current non-failing public school
is notified by the local school system that the student is assigned to attend a
failing public school for the next school year, then the parent may choose to
enroll the student in a non-failing public school or nonpublic school of the
parent's choice and still be eligible for the parent's tax credit.
(c) A parent whose student is transferring
from his or her current non-failing public school due to the bona fide move of
the family to a new physical residence may enroll the student in a different
non-failing public school or nonpublic school of the parent's choice if the
parent has been notified that the student is assigned to a failing public
school based on the family's new physical residence. When determining whether
the family has made a bona fide move, the family must have moved its household
furniture into the new physical residence and all principal members of the
family must reside at the new residence. Further, the original residence should
be closed, rented or disposed of and not used by the family.
Author: Brandee Tickle
StatutoryAuthority:
Code of Ala. 1975, §§
40-2A-7(a)(5),
16-6D-1.
