Idaho opens second round of parental choice tax credit applications

Idaho left about $7.09 million in parental choice tax credits unclaimed after the first round, and that money is now back in play for families willing to move fast. The Idaho State Tax Commission reopened applications Thursday at 8 a.m. MDT and will keep accepting requests until Aug. 15 or until the remaining funds run out, whichever comes first.

The program, created by House Bill 93 and enacted earlier this year by the Legislature and Gov. Brad Little, gives eligible families a refundable tax credit for nonpublic education expenses, including private school tuition. The credit can be worth up to $5,000 per eligible student, or up to $7,500 for an eligible student with a qualifying disability.

The first application window, from Jan. 15 through March 15, drew 6,069 applications covering 10,809 students. In April, the state distributed $42.4 million from the program, which was designed with nearly $50 million in state funds. The Tax Commission said applications are processed in the order they are received, but families with 2024 modified adjusted gross income at or below 300% of the federal poverty level get priority first. More than 45% of first-round applications came from households at or below that threshold, showing the money has already reached many moderate- and lower-income families, not just wealthier households.

For Kootenai County families weighing private school tuition, homeschool curriculum, tutoring, and other nonpublic costs, the second round is a narrow chance to get into a program that has already absorbed most of its first-year funding. The reopening matters because demand was strong enough to use up $42.4 million, but not strong enough to empty the full appropriation before the first deadline.

The state has also launched a dedicated website to walk parents through eligibility and the application process, and the Tax Commission says parents must apply and be awarded the credit before they can claim it. The agency will report several measures to lawmakers, including the average credit amount, how many credits went to families below 300% of poverty, how many parents sought advance payments, how many were approved, and the median advance-payment amount.

Even so, the public still does not have a full picture of who is using the program. Idaho Education News sought more detail on whether recipients were already enrolled in private school or learning at home, but the Tax Commission declined to release those application-level records. A broader first-year report is not due to the Legislature until January 2027, leaving Idaho’s newest school-choice subsidy under close watch as the second round closes in on its limited remaining dollars.