Bill > H0039

This bill establishes the Idaho Parental Choice Tax Credit, which provides a refundable tax credit of up to $5,000 (or $7,500 for students with disabilities) for parents who pay qualified educational expenses for eligible students not enrolled in public schools. Eligible students are Idaho residents aged 5-18 (or up to 21 for students with disabilities) who are not enrolled in any public school. Qualified expenses include tuition, tutoring, assessments, textbooks, curricula, educational materials, and transportation costs. For the 2026 tax year, priority will be given to parents with household incomes at or below 300% of the federal poverty level. Parents can apply for the credit annually, with an application period from January 15 to March 15, and can optionally request an advance payment. The total tax credits are capped at $50 million per year, and if demand exceeds the cap, credits will be awarded on a priority and first-come, first-served basis. The bill also creates a dedicated fund for advance payments and requires the state tax commission to provide an annual report on the program's implementation. The legislation emphasizes parental choice in education and ensures that participation does not subject non-public schools to additional government regulation.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0039/