The Idaho Parental Choice Tax Credit | B.A. Harris

Published on Wednesday, June 4, 2025

The Idaho Parental Choice Tax Credit, created by House Bill 93 and signed into law by Governor Brad Little on February 27, 2025, is a refundable tax credit program aimed at helping families cover the costs of nonpublic (private) K–12 education. Funding for the program is appropriated from the state’s general fund, with an estimated annual administrative cost of $675,000.

Under the program, parents may receive an annual credit of up to $5,000 per eligible student for qualified educational expenses. For students with disabilities who require additional educational support, the annual credit may be increased to up to $7,500 per student.

Eligible expenditures under the program include, but are not limited to:

• Tuition and fees for private schools
• Tutoring and other approved supplemental educational services
• Curriculum and textbooks
• Fees for standardized tests and Advanced Placement (AP) exams
• Transportation related to educational activities

Families with a Modified Adjusted Gross Income at or below 300% of the federal poverty level will receive priority consideration during the application process. These families may also apply for a one-time advance payment of the credit, which will be disbursed within 60 days of approval. For a family of four in 2025, this equates to an household income below $96,450. It is important to note that while the program prioritizes applicants below this threshold, there is no income cap for eligibility.

Beginning in 2027, application priority will be assigned in the following order:

1. Applicants who received the credit in 2026
2. Applicants who did not receive the credit in 2026 and have a MAGI at or below 300% of the federal poverty level
3. All other applicants who did not receive the credit in 2026

Eligibility Requirements:

Residency: Applicants must be full-time residents of the state of Idaho.

Student Age: Eligible students must be between the ages of 5 and 18, or up to age 21 for students with disabilities who require additional services.

Enrollment: To qualify for the credit, students must be enrolled in a nonpublic school, receiving tutoring, or utilizing other approved educational services. The credit cannot be claimed for any semester in which the student is enrolled, either full- or part-time, in a public school, public charter school, public virtual charter school, public magnet school, or part-time public kindergarten. Additionally, the credit does not apply to tuition or fees for parents teaching their own eligible children. However, other approved educational expenses related to homeschooling are eligible, such as textbooks and supplies.

Documentation: Applicants are advised to retain all relevant receipts and documentation, as the Idaho State Tax Commission may request verification for audit purposes.

Engagement Survey: Recipients of the tax credit will be required to complete and submit an annual parent satisfaction and engagement survey. Failure to comply will result in the recapture or repayment of the awarded credit.