On February 27, 2025, Idaho Governor Brad Little signed into law House Bill 93, establishing the Idaho Parental Choice Tax Credit program. This legislation introduces a refundable tax credit geared toward expanding educational options for Idahoans by REIMBURSING qualified educational expenses.
Credit Overview
The Idaho Parental Choice Tax Credit provides a refundable individual income tax credit of up to $5,000 per eligible student for qualifying educational expenses. For students with disabilities, the credit increases to up to $7,500. The program is designed to assist parents, guardians, or foster parents in covering costs associated with non-public K-12 education.
Eligible Expenses
Qualifying expenses under this program include:
- Tuition and fees for enrollment at private schools, microschools, or learning pods.
- Tutoring services.
- Fees for nationally standardized assessments and college admission tests.
- Textbooks and curricular materials.
- Transportation costs to and from educational institutions. (Field trip anyone?)
To qualify, private schools must either be accredited or parents must provide evidence of their student’s academic progress, including instruction in core subjects such as English language arts, mathematics, science, and social studies.
Funding and Administration
The program is funded through a continuous appropriation of $50 million, managed by the Idaho State Tax Commission (These are the Income Tax folks). Applications for reimbursement of qualifying expenses incurred in 2025 will be processed beginning in January 2026. Interestingly, parents with a modified adjusted gross income at or below 300% of the federal poverty level may elect a one-time advance payment of the credit for each eligible student, with payments disbursed within 60 days of application approval.
Eligibility Criteria
All Idaho residents between the ages of five and 18 are eligible to participate in the program, with eligibility extending to age 21 for students with disabilities. Priority is given to applicants with household incomes at or below 300% of the federal poverty level, particularly during the initial application period. In subsequent years, priority will be afforded to previous recipients and then to new applicants meeting the income criteria.
Application Process and Timeline
The Idaho State Tax Commission is responsible for administering the program and will provide detailed guidelines (hopefully SOON!) on the application process. Parents seeking reimbursement for 2025 expenses can submit applications starting in January 2026. Those eligible for advance payments should indicate their preference during the application process to receive funds within the stipulated 60-day timeframe.
Implications for Idaho Families
The enactment of the Idaho Parental Choice Tax Credit signifies a commitment to educational freedom within the state. By alleviating financial burdens associated with private and alternative educational avenues, the program gives parents options to select the educational environments that best suit their children’s needs and not bear the complete financial burden of their choice. Governor Little thinks that Idaho can maintain strong public schools while offering educational freedom, underscoring the state’s dedication to providing high-quality education for all students. Time will be the best judge of this program.
Conclusion
The Idaho Parental Choice Tax Credit represents arguable advancement in the state’s educational landscape, offering families greater autonomy in making educational decisions. As the program unfolds, it is expected to enhance the diversity and accessibility of educational opportunities across Idaho, reinforcing the state’s commitment to both robust public schooling and educational freedom. What do you think?
News segment: https://youtu.be/m09nzFAZ_g8
“Who’s Doing Your Taxes?” – Tax Rescue CPA
