All Roll Calls
Yes: 62 • No: 43
IdahoH 00932025 regular legislative sessionHouseWALLET
TAXATION – Adds to existing law to establish the Idaho parental choice tax credit and Idaho Parental Choice Tax Credit Advance Payment Fund.
Sponsored By: REVENUE AND TAXATION COMMITTEE
Signed by Governor
TAXATION
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
New family school credit with limits
Starting with tax year 2025, Idaho provides a refundable credit for approved K–12 education expenses outside public schools. Parents can receive up to $5,000 per student, or $7,500 for a documented disability requiring support staff. Refundable means families receive any credit above their Idaho income tax bill; the credit is not Idaho taxable income. Parents and students must be full-time Idaho residents, and students must be claimed as dependents. Parents include legal guardians and licensed foster parents. Eligible ages are 5–18, or 5–21 for students with disabilities requiring support staff. Only one parent can claim each student. Covered costs include nonpublic tuition, tutoring, textbooks, curricula, testing, test preparation, industry certification fees, and transportation. Private vehicle mileage uses the state employee rate. Costs funded by specified state grants or reimbursements do not qualify, nor does tuition for parent-provided instruction. Public school enrollment, including part-time kindergarten and public charter or virtual programs, blocks credit eligibility for the relevant semester. State Tax Commission approval is required before claiming, and statewide awards cannot exceed $50 million yearly. Starting in 2026, applications open January 15 for 60 days, with decisions within 30 days after closing. Applications reopen through August 15 if money remains. In 2026, priority goes to households with modified adjusted gross income at or below 300% of the federal poverty level. Starting in 2027, prior-year recipients come first, followed by the income priority; first-come rules and a waiting list also apply. Income priority uses the latest filed tax return. Parents must submit the required satisfaction survey by March 15 to remain eligible in a later year. False statements, improper spending, or filing failures can trigger denial or recovery of awards. Parents receive notice explaining federal special education rights and services when participation counts as a parental private-school placement. The commission publishes running program totals and, starting in 2027, annual reports on awards, applicants, income, geography, advances, spending categories, and waitlists. Legislative Services surveys recipients beginning in 2026 and reports results beginning in 2027.
Earlier school payments for lower-income families
The law creates a one-time advance option for each eligible student with an approved school tax credit award. Parents must choose the advance on their application. Modified adjusted gross income on their latest return must not exceed 300% of the federal poverty level. Advances arrive in one payment within 60 days after the award notice and no later than August 30. The advance is not Idaho taxable income, but it reduces the credit available when parents file their return. Money must cover qualified education expenses, and misuse or lost eligibility can trigger repayment. Repayment obligations are limited to the advance paid. A dedicated state fund pays advances without a separate annual appropriation requirement. Its sources include legislative appropriations and transfers, donations, recovered or returned payments, and interest. The law took effect on passage and applies retroactively to January 1, 2025; annual applications begin in January 2026.
Private schools keep control over policies
Government agencies gain no authority under this credit program to control or supervise nonpublic schools or their students' education. Accepting tuition or fees funded through the credit does not make a school a government agent. Schools do not have to change their beliefs, practices, admissions rules, or curriculum to accept these students.
Sponsors & Cosponsors
Sponsor
REVENUE AND TAXATION COMMITTEE
Affiliation unavailable
Cosponsors
Lori Den Hartog
Republican • Senate
Horman
Affiliation unavailable
Roll Call Votes
Senate vote • 2/19/2025
Senate Floor Vote
Yes: 20 • No: 15
House vote • 2/7/2025
House Floor Vote
Yes: 42 • No: 28
Actions Timeline
Reported Signed by Governor on February 27, 2025 Session Law Chapter 9 Effective: Retroactive to 01/01/2025
2/27/2025Delivered to Governor at 11:46 a.m. on February 21, 2025
2/24/2025Returned Signed by the President; Ordered Transmitted to Governor
2/21/2025SenateSigned by President; returned to House
2/21/2025SenateReceived from the House enrolled/signed by Speaker
2/21/2025SenateReported Enrolled; Signed by Speaker; Transmitted to Senate
2/21/2025HouseReturned from Senate Passed; to JRA for Enrolling
2/20/2025HouseRead third time in full – PASSED - 20-15-0
2/19/2025SenateRead second time; filed for Third Reading
2/14/2025SenateReported out of Committee with Do Pass Recommendation; Filed for second reading
2/13/2025SenateIntroduced, read first time; referred to: Local Government & Taxation
2/10/2025SenateReceived from the House passed; filed for first reading
2/10/2025SenateRead Third Time in Full – PASSED - 42-28-0
2/7/2025HouseRead second time; Filed for Third Reading
2/6/2025HouseReported out of Committee with Do Pass Recommendation, Filed for Second Reading
2/5/2025HouseReported Printed and Referred to Revenue & Taxation
1/31/2025HouseIntroduced, read first time, referred to JRA for Printing
1/30/2025House
Bill Text
Bill Text
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