Program Reaches $50 Million Spending Limit
Idaho’s Parental Choice Tax Credit program has reached its annual spending cap, prompting the State Tax Commission to close applications effective immediately, the agency announced Friday.
The program, created through House Bill 93 last year, provides refundable tax credits to families with students enrolled in non-public schools. The credits reach up to $5,000 per student and up to $7,500 for students with special needs. The program operates under a $50 million annual spending cap that includes administrative costs.
Applications for the current tax year had been open since January, with a second application window reopened in May after the first round consumed roughly $42.9 million of available funds. The program was set to close applications on August 15 or when the cap was reached, whichever came first. The cap has now been reached.
Strong Participation from Lower-Income Families
As of Tuesday, the Tax Commission had received 7,019 applications covering 12,497 students seeking credits. The program prioritizes households earning at or below 300 percent of the federal poverty level—currently $96,450 for a family of four. Approximately 45 percent of applicants fell within that income threshold when the second application window opened in May.
Notably, the program contains no income limits for eligibility. A household earning $137,000 annually with two children in private school could receive a refund of all state taxes owed plus an additional $5,000 check from the state. Families can claim credit for an unlimited number of students within the household.
Recipients Can Reapply; Priority Given Next Year
Approved recipients are permitted to reapply next year for education expenses incurred during the current tax year. Beginning in the next application cycle, previous recipients will receive priority access to available credits ahead of new applicants.
The Tax Commission has declined to release detailed aggregate data on recipients, citing state privacy laws and a statutory requirement that reporting occur by January. State Tax Commissioner Janet Moyle stated that “privacy laws prohibit the commission from releasing spreadsheets used to collect data on the tax credit.” A public records request for such data was refiled Friday.
What Comes Next
Families interested in the program for the current tax year will need to wait for the 2027 application cycle. The Tax Commission is expected to provide reporting on the full scope of recipients and program spending by January, as required by state law. The program’s structure and any potential adjustments to the annual cap will likely be subjects of discussion when the Idaho Legislature reconvenes in 2027.