This information is taken from the 'FAQ' article I just cited in my previous post (#20).
Point 1> Alabama spent about $4,442 per student per year in 2010-2011, not including federal and local funding. Since the Accountability Act sets the bar at 80 percent of the state's cost to educate a child in public schools, the tax credit, if it would have existed that year, would have been $3,553.
Point 2> If your state income tax bill is less than the amount of the credit, the state will pay you the difference in the form of a rebate. In other words, if your child qualifies for a $3,500 tax credit, but your state tax bill is only $1,000, the state would send you a check for $2,500.
So there's the rub - and it is understandable: if your total state tax liability is LESS than allowed credit, then you will not get back more money than you owe for any given year. There's some language in the bill that seems to push the remaining credit off to future years, but that's gonna be problematic in any case:
"If income taxes owed by the parent are less than the total credit allowed under this subsection, the taxpayer shall be entitled to a refund or rebate, as the case may be, equal to the balance of the unused credit with respect to that taxable year."
Okay.
The bill is obviously targeted to lower income families (your income must be at or below 150% of the state median, or no credit). Private school tuitions seem to run anywhere from $6000 to $10,000 annually. The tax credit would cut that in half - maybe - but the lower income families most needing to take advantage of the program likely won't even get that much:
If you have no income: no tax credit
If you have an income roughly over $75,000... now you can probably get the entire credit. But that's a pretty stout paycheck for the targeted audience.
The state is relying on provisions intended to encourage businesses and individuals to donate heavily to private schools in the form of scholarships: individuals can can a 100% credit for donations (up to the tax liability); for businesses the limit is 50% credit up to 50% liability.
We'll see if that proves to be enough.
Is that funding to the classroom or does it include heat, lights, lunches, etc.?
Catholic high schools about $6k. Elementary schools about $3k. It can be done.
Of course, tuition is partially subsidized by parishioners.
But as I like to respond to government schools supporters, "Why don't you go out and raise donations for your fine schools? If they're as good as you say, it should be easy."
Watch a bunch of inexpensive, store-front private schools spring up with, gasp, uncertified teachers!... If the law allows.