PRIA Logo™
IdahoH 09342026 regular legislative sessionHouseWALLET

TAXATION – Amends existing law to revise provisions regarding the Idaho Parental Choice Tax Credit.

Sponsored By: WAYS AND MEANS COMMITTEE

Signed by Governor

TAXATION

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Refundable K-12 credit for nonpublic schooling

Beginning tax year 2025, Idaho gives parents a refundable tax credit up to $5,000 per eligible student. If your child has a qualifying disability needing ancillary personnel, the limit is up to $7,500 and eligibility runs through age 21. A child qualifies if they lived in Idaho full time and were age 5–18 during the year (5–21 for qualifying disabilities) and you claim them as your dependent on your Idaho return. You can count nonpublic K–12 tuition and fees, tutoring, tests (AP and college admission), some certification exams and prep, textbooks, K–12 curricula, and transportation at the state mileage rate. Do not include costs paid with grants under section 33‑1031 or reimbursements under section 33‑4603. The credit, including any advance, is not Idaho taxable income.

Rules you must follow to keep credit

You may claim this credit only for qualified expenses for an eligible student. You cannot claim it for any semester the student was enrolled in a public school, public charter, public virtual charter, public magnet, or part‑time public kindergarten. Allowed exceptions include non‑credit activities, sports, mid‑year transfers, homeschooling, and certain fee‑based IDLA courses. Only one parent may claim the same student, and you cannot claim tuition or fees you provided to your own student. Each year you must complete and return the parent satisfaction and engagement survey by March 15 to stay eligible the next year. The tax commission can deny or claw back credits for unauthorized expenses; if a student later stops qualifying after an advance, you must repay up to the advance amount. Claims filed without an approved application are not paid.

One-time advance for lower-income parents

Starting in 2026, you may choose a one-time advance for each eligible student if you did not claim the credit for that student last year. Your most recent modified adjusted gross income must be at or below 300% of the federal poverty level. The state pays the advance in one installment within 60 days of your award notice and no later than August 30. You must spend advance funds only on qualified expenses. The law ends the old advance‑payment fund; advances now come from the state refund account.

Limited funds, deadlines, and priority rules

Starting January 2026, applications open January 15 and stay open 60 days. The tax commission must notify you within 30 days after the window closes. If money remains, applications can reopen until August 15. The program is capped at $50 million each tax year; credits go first to priority applicants, then first‑come, first‑served, and others go on a waiting list. For 2026, priority goes to parents with MAGI at or below 300% of the federal poverty level. From 2027 on, priority goes first to prior‑year recipients, then to parents whose most recent taxable income is at or below 300% FPL.

Private schools keep control and policies

The law does not let the state control or supervise nonpublic schools through this credit. A nonpublic school that takes a parent‑directed credit payment is not a government agent and cannot be forced to change its creed, admissions, or curriculum.

Sponsors & Cosponsors

Sponsor

  • WAYS AND MEANS COMMITTEE

    Affiliation unavailable

Cosponsors

  • Lori Den Hartog

    Republican • Senate

  • Jason A. Monks

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 67 • No: 36

Senate vote • 3/31/2026

Senate Floor Vote

Yes: 23 • No: 12

House vote • 3/23/2026

House Floor Vote

Yes: 44 • No: 24

Actions Timeline

  1. Reported Signed by Governor on April 2, 2026 Session Law Chapter 302 Effective: Retroactive to 01/01/2026

    4/2/2026

  2. Delivered to Governor at 4:12 p.m. on April 1, 2026

    4/1/2026

  3. Returned Signed by the President; Ordered Transmitted to Governor

    4/1/2026Senate

  4. Signed by President; returned to House

    4/1/2026Senate

  5. Received from the House enrolled/signed by Speaker

    4/1/2026Senate

  6. Reported Enrolled; Signed by Speaker; Transmitted to Senate

    4/1/2026House

  7. Returned from Senate Passed; to JRA for Enrolling

    3/31/2026House

  8. Read third time in full – PASSED - 23-12-0

    3/31/2026Senate

  9. Read second time; filed for Third Reading

    3/26/2026Senate

  10. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    3/25/2026Senate

  11. Introduced, read first time; referred to: Local Government & Taxation

    3/24/2026Senate

  12. Received from the House passed; filed for first reading

    3/24/2026Senate

  13. Rules Suspended: Ayes 68 Nays 0 Abs/Excd 2, read in full as required – PASSED - 44-24-2

    3/23/2026House

  14. Read second time; Filed for Third Reading

    3/23/2026House

  15. Reported out of Committee with Do Pass Recommendation, Filed for Second Reading

    3/20/2026House

  16. Reported Printed and Referred to Revenue & Taxation

    3/19/2026House

  17. Introduced, read first time, referred to JRA for Printing

    3/19/2026House

Bill Text

Related Bills

Back to State Legislation