Idaho Parental Choice Tax Credit application window re-opens May 21

Good news for Idaho families! The Idaho Tax Commission has announced it will reopen the application window for the Idaho Parental Choice Tax Credit Program tomorrow, May 21, at 8 a.m. (MDT).

The $50 million state-sponsored program was created to help empower Idaho families to choose the best educational option for their children. Families who choose private schooling, homeschooling, or hybrid educational options outside the public school system are eligible to apply for the remaining $7.09 million in available program funding. The application window will remain open until 11:59 p.m. on August 15, or until all funds have been awarded, whichever comes first.

The application process remains the same as the first round and will continue to be administered through the Idaho Tax Commission. Families must be full-time Idaho residents, as indicated by the filing of a 2024 Idaho Form 40 tax return. Residency is verified through the creation of a Taxpayer Access Point (TAP) account. After creating a TAP account, families will use the TAP portal to apply for the program, submit documentation, and receive award notifications.

To qualify, students must be at least 5 years old and no older than 19 by December 31, 2026. Students with qualifying disabilities must be no older than 22 by December 31, 2026. Families may claim up to $5,000 per student, or up to $7,500 for students with qualifying disabilities.

Eligible expenses include private school tuition, tutoring, textbooks, transportation, homeschool curriculum, and standardized assessments.

Applications will be processed on a first-come, first-served basis, with priority given to families earning below 300% of the federal poverty level, based on modified gross income reported on the family’s 2024 Idaho Form 40.

Families who qualify for priority processing based on income may also choose the one-time advance payment option, which provides funding upfront rather than through a tax refund. This option was created to support families who want to pursue non-public education but need assistance covering initial expenses such as homeschool curriculum or private school tuition.

Families who have already filed their 2025 tax return and later receive the tax credit must amend their 2025 return to reflect the award received. Families receiving the advance payment option must save all receipts and supporting documentation for their 2026 tax return. Any unspent or ineligible funds must be returned to the state.

The program is specifically intended for students who are not enrolled in Idaho’s public school system, and parents may not claim the tax credit for any semester in which their child attended a public school option. However, the Legislature recently clarified that students who participate in sports or non-credit activities at their local public school may still participate in the advance tax credit program.

Additionally, students taking advanced courses through their local college or through Idaho Digital Learning Alliance may still qualify for the advance payment tax credit, as long as the state is not already paying for those courses.

According to the Tax Commission, here are the current statistics available on the tax credit to date:

• Number of applications received: 6,069 applications for 10,809 students;
  

• Applications with a modified adjusted gross income at or below 300% of the federal poverty level: 2,709

  
  

• Amount of funds awarded: $33.4 million in tax credits, $8.84 million in advance payments; and

  
  

• Amount of funds available: $7.09 million.

Next January, in accordance with the law, the legislature will be provided a full report with these details:

• The total amount of tax credits provided each year;
  

• The number of parents who applied each year for the Idaho parental choice tax credit;
  

• The amount of the average tax credit allowed;
  

• The number of credits distributed to parents with an adjusted gross income below three hundred percent (300%) of the federal poverty level;
  

• The number of parents who applied each year for the advance payment;
  

• The number of advance payments awarded;
  

• The median amount of the advance payments awarded;
  

• The geographic area of parents applying for the credit;
  

• The number of eligible students on the waiting list for each year; and
  

• A list of the categories of qualified expenses for which recipients used the tax credit and the dollar amounts for each category listed in Idaho Code section 63-3029N(2)(f).

To learn more, ask questions, and subscribe to the latest program updates, visit Idaho Kids Win, the education choice website sponsored by Mountain States Policy Center.