IdahoIdaho parents can claim approved credits for eligible education costs
Idaho law provides refundable credits for eligible education costs, with annual applications, income-based priority rules, and a yearly limit on total credits.
What it does
Parents with approved applications may claim refundable credits for eligible education costs, up to $5,000 per student or $7,500 for a qualifying student with a disability.
Applications open each January, and the commission must notify parents of awards. Priority rules and a $50 million yearly cap determine who receives credits when claims exceed the limit.
Eligible parents may elect one advance payment, but must spend it on eligible costs and submit a school survey to qualify for a credit in a later year.
The law repeals the section of Idaho law concerning the tax credit advance-payment fund.
Argument forParents may use approved credits for several education costs, including tutoring, learning materials, and travel to instruction.
Argument againstFamilies could receive no credit if claims reach the $50 million yearly cap before their applications are considered.
More detail
The state allows parents to claim refundable tax credits for eligible education costs. A student must be an Idaho resident age 5 to 18 during the tax year, or a child with a qualifying disability age 5 to 21. Eligible costs include nonpublic school tuition or fees, tutoring, assessments, learning materials, and travel for instruction. The parent must apply on time, receive approval, claim the student as a dependent on a full-time Idaho resident tax return, and incur eligible costs. The credit is up to $5,000 per student, or up to $7,500 for a qualifying student with a disability; the higher amount requires supporting documentation. The credit applies to tax year 2025 and later years. The law took effect retroactively to January 1, 2026.
The state tax commission awards credits through yearly applications, subject to a $50 million cap. Parents must submit a complete, timely application to be considered for a credit. When claims exceed the cap, parents with priority status are considered first; remaining complete applications are considered in the order received. For 2026, priority goes to parents whose modified adjusted gross income is no more than 300% of the federal poverty level. Starting in 2027, prior-year recipients have first priority, followed by parents whose taxable income is no more than that level. Starting in 2026, applications open January 15 for 60 days. If claims are below the yearly cap, the application period reopens until August 15 or until the cap is reached.
The state tax commission may issue a one-time advance payment of the credit. The advance is for an eligible student whose parent did not claim a credit for that student in the previous year. A parent may elect an advance only if the student did not receive a credit in the previous year and the parent's modified adjusted gross income is no more than 300% of the federal poverty level. The parent may spend the advance only on eligible costs. A parent must submit the required school survey to qualify for a credit in a later year. The commission pays an approved advance in one installment within 60 days after notifying the parent, and no later than August 30. Parents must submit the survey by March 15.
The law repeals the section of Idaho law concerning the Idaho Parental Choice Tax Credit Advance Payment Fund. The repeal concerns the Idaho Parental Choice Tax Credit Advance Payment Fund. The repeal took effect retroactively to January 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 2Reported Signed by Governor Brad Little on April 2, 2026 Session Law Chapter 302 Effective: Retroactive to 01/01/2026Became Law
- Apr 1Delivered to Governor at 4:12 p.m. on April 1, 2026To Governor
- Apr 1Returned Signed by the President; Ordered Transmitted to GovernorMinor
- Apr 1Signed by President; returned to HouseMajor
- Apr 1Received from the House enrolled/signed by SpeakerMajor
- Apr 1Reported Enrolled; Signed by Speaker; Transmitted to SenateMajor
- Mar 31Returned from Senate Passed; to JRA for EnrollingMinor
- Vote recorded Read third time in full –. Result: pass.Upper
- Mar 31Read third time in full – PASSED - 23-12-0AYES – Adams, Anthon, Bernt, Bjerke(Bjerke), Blaylock, Carlson, Den Hartog, Foreman, Galloway, Grow, Hart, Keyser, Kohl, Lakey, Lenney, Nichols, Okuniewicz, Ricks, Toews, VanOrden, Woodward, Zito, ZuiderveldNAYS – Burtenshaw, Cook, Guthrie, Harris, Lent, Rabe, Ruchti, Semmelroth, Shippy, Taylor, Ward-Engelking, WintrowAbsent and excused – NoneFloor Sponsor - Den HartogTitle apvd - to HousePassed 2nd Chamber
- Mar 26Read second time; filed for Third ReadingMinor
- Mar 25Reported out of Committee with Do Pass Recommendation; Filed for second readingMinor
- Mar 24Introduced, read first time; referred to: Local Government & TaxationMinor
- Mar 24Received from the House passed; filed for first reading
- Mar 23Rules Suspended: Ayes 68 Nays 0 Abs/Excd 2, read in full as required – PASSED - 44-24-2AYES – Alfieri, Barbieri, Beiswenger, Boyle, Bruce, Burgoyne, Cannon, Cayler, Crane(12), Crane(13), Dygert, Ehardt, Ehlers, Erickson, Fuhriman, Harris, Hawkins, Healey, Hill, Holtzclaw, Hostetler, Leavitt, Manwaring, Marmon, Mendive, Miller, Mitchell, Monks, Palmer, Pickett, Price, Rasor, Redman, Scott, Shepherd, Shirts, Skaug, Tanner(13), Tanner(14), Thompson, Vander Woude, Veile, Wisniewski, Mr. SpeakerNAYS – Bingham, Cheatum, Church, Egbert, Furniss, Galaviz, Gannon, Garner, Green, Hall(Stone), Handy, Haws, Mathias, McCann, Mickelsen, Nelsen, Petzke, Pohanka, Raybould, Raymond, Rubel, Sauter, Weber, WheelerAbsent – Berch, CornillesFloor Sponsor - MonksTitle apvd - to SenatePassed 1st Chamber
- Vote recorded Rules Suspended: Ayes 68 Nays 0 Abs/Excd 2, read in full as required –. Result: pass.Lower
- Mar 23Read second time; Filed for Third ReadingMinor
- Mar 20Reported out of Committee with Do Pass Recommendation, Filed for Second ReadingMinor
- Mar 19Reported Printed and Referred to Revenue & Taxation
- Mar 19Introduced, read first time, referred to JRA for PrintingIntroduced
Taxes & BudgetEducation