AL SB301

Provides a nonrefundable state income tax credit for parents or guardians of eligible students enrolled in qualified private or church schools, beginning with tax year 2012.

Non-low-income taxpayers may claim up to 75 percent of qualifying educational expenses, capped at $500 per child ($650 per household) in 2012 and $600 per child ($750 per household) in 2013, with adjustments for inflation thereafter; low-income households may claim up to 100 percent of expenses.

Restricts eligibility to households with total annual adjusted gross income of $60,800 or less, with "low income" defined as 175 percent of the federal poverty level ($39,135 for a family of four).

Requires qualified schools to meet accreditation standards or satisfy eight specific conditions including three years of existence, 85 percent average attendance, 178-day school year, teacher-to-student ratio of 1:20, and standardized testing requirements.

Directs the State Department of Revenue to create standardized receipts for documenting qualifying expenses and requires Commissioner of Revenue to report annually on total tax credits claimed to state finance officials and relevant legislative committees.