Important details released for Idaho's new education choice tax credit

Parents, you won't want to miss these details from the Idaho State Tax Commission. The full implementation of HB 93 (school choice tax credit) is moving forward, and families are invited to register for an online webinar on August 19 or an in-person seminar in Boise on August 26 to learn more about how to apply for the tax credit.

In preparation for these events, the Idaho State Tax Commission has posted an FAQ page to answer the questions parents may have about how to utilize this new education choice option.

This new school choice program provides eligible families a $5,000 tax credit for educational expenses, including private school tuition. Special needs students could qualify for a $7,500 tax credit. It is universal (any family can apply), but priority will be given first to low-income families.

Because of the first-come, first-served structure of the tax credit, parents are encouraged to act quickly once the application period opens. According to the Tax Commission:

"You’ll be able to apply for the 2025 program online from January 15, 2026, through March 15, 2026. Please remember this is a first-come, first-served program, so we recommend you apply as soon as possible. The program requires priority to be given to parents whose total adjusted income doesn’t exceed 300% of the federal poverty level. In addition, applicants are required to keep receipts for qualified expenses.

Applicants whose total adjusted income exceeds 300% of the federal poverty level will be placed on a wait list until priority applications have been processed. All applications will be processed in the order in which they’re received . . .

You’ll apply online through our Taxpayer Access Point (TAP). You’ll need to get a TAP account if you don’t already have one for individual income tax. We suggest you register for a TAP account now, so you’ll be ready to fill out your application online in January. It can take from one day to two weeks to register for the account depending on your circumstances. To get a TAP account, register at tax.idaho.gov/NewTAP."   

The Parental Choice Tax Credit is currently capped at $50 million, which is equal to just .0185% of the state’s public school budget. This tax credit does not take any funding from traditional public schools.

As Mountain States Policy Center has repeatedly noted, the HB 93 school choice tax credit is not a voucher. The Idaho State Tax Commission also makes this point clear in its FAQ:

"Is the Idaho Parental Choice Tax Credit program a voucher program? No. Once the tax credit is awarded through the application process, it goes directly to a parent, guardian, or foster parent of the eligible student(s)."

We'll post additional details about this exciting new education choice program in Idaho as they become available.