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Why It Matters
Idaho’s Parental Choice Tax Credit program has reached its $50 million annual spending cap, closing applications for families seeking to claim refundable tax credits for private school tuition and special education expenses. The program, which allows families to redirect education dollars toward non-public schools, has processed thousands of applications in just seven months of operation.
What Happened
The Idaho State Tax Commission announced Friday that the private education tax credit program had exhausted its annual funding limit, ending the second application round ahead of its scheduled August 15 deadline. The program, authorized through House Bill 93, launched its first application period in January and reopened for a second round in May after approximately $7.1 million remained available from initial allocations.
As of Tuesday, the Tax Commission had received 7,019 applications covering 12,497 students seeking credits. The program provides up to $5,000 in refundable tax credits per student enrolled in non-public schools and up to $7,500 for students with special needs. Credits cover qualifying education expenses, and there is no limit on the number of students a household can claim.
Families earning at or below 300 percent of the federal poverty level received priority approval in the selection process. For a family of four, the 300 percent threshold corresponds to approximately $96,450 in annual household income. According to May announcements, roughly 45 percent of applicants fell into this income bracket.
The program has no overall income cap, making credits available to households across the economic spectrum. Families approved for credits this year can reapply next year for expenses incurred during the current tax year. Beginning in 2027, previous recipients will receive priority access before new applicants are considered.
By the Numbers
- $50 million — annual program spending cap including administration costs
- $7,500 — maximum credit available for students with special needs
- 12,497 — students covered by applications as of Tuesday
- 45% — percentage of applicants at or below 300 percent of federal poverty level
- 7 months — time elapsed from program launch to annual cap being reached
Transparency Questions
The Tax Commission has released limited information about credit recipients and program demographics. State Tax Commissioner Janet Moyle cited privacy laws as the reason for declining public records requests, stating that “privacy laws prohibit the commission from releasing spreadsheets used to collect data on the tax credit.”
An education news outlet filed a public records request after the first application round closed in May, which the Tax Commission declined, noting the application period remained open and it had not yet compiled required reports. State law does not mandate public reporting of recipient data until January. The outlet refiled its records request Friday after the second round closed.
What’s Next
Recipients of the tax credit can claim the credits on their 2025 tax returns. The Tax Commission is expected to release aggregate data on program participation and recipient demographics in January 2027, as required by state law. Families interested in applying for the 2027 tax year will have access to the program when the application period opens for the next cycle.
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