Applications for Idaho’s education tax credit closed in March. Who applied?
A majority of families who applied for Idaho’s $50 million education tax credit program make more than 300% of the federal poverty level, according to initial data from the Idaho State Tax Commission.
The commission received over 6,000 applications for 10,800 students from January through March 15, when the application window closed. Of those applications, 2,709 had a modified adjusted gross income at or below 300% of the federal poverty level — the cutoff to be given priority for the credits. For a family of four, that would be around $96,000, according to the 2025 guidelines.
According to the most recent data, a total of $33.4 million in credits were allocated, and $8.84 million in advance payments. Families whose income doesn’t exceed 300% could apply for one-time advance payments to get the funds “up front to help cover all or part” of a child’s eligible expenses. The available balance in the fund is about $7 million, according to data from the Idaho State Tax Commission.
The commission could reopen applications. Spokesperson Renee Eymann said in an email that the commission doesn’t have a specific date “as to when we’re reopening the application process, but when we do, we’ll notify the media.” Eymann said the commission also couldn’t provide the total number of students whose families have been awarded the tax credits so far, or the number of students with disabilities whose families received the credits.
Under the Parental Choice Tax Credit, which lawmakers approved during last year’s session, most eligible families can receive a refundable tax credit of up to $5,000. Parents of students with disabilities can receive up to $7,500. Qualified expenses include tuition for non-public schools, tutoring, assessments and transportation.
Families with any income can apply for the tax credits, and not all families may be awarded the maximum amounts of $5,000 or $7,500.
The Tax Commission will provide a report about the program to the governor and Legislature at the beginning of next year.
Lawmakers passed the bill last year after years of trying to push for a program that would provide funds for families who don’t send their kids to public school.
Those who opposed the bill said it would take funds from already struggling public schools. Idaho consistently ranks last or near last in funding per pupil. Others worried that the funds would go to schooling options with little oversight or accountability, unlike public schools. Many of Idaho’s private schools are also concentrated in more urban areas. In rural areas, public schools or homeschooling may be the only options, according to previous Statesman reporting.
Those in support of the bill said it would allow parents to choose the best options for their kids and argued that public schools don’t work for everyone. Since then, advocates have praised the program for allowing families with lower incomes to take advantage of the funds to make education choices that work for them.
Last fall, advocates and groups, including the Idaho Education Association, sued over the law, asking the Idaho Supreme Court to prohibit the tax credits. They argued in a petition that Idaho’s Constitution requires the state to create a “uniform, thorough and free” system of public schools — and that diverting public funds to private options doesn’t do that. Earlier this year, the Idaho Supreme Court upheld the law.
