Idaho families get a second chance to apply for $50 million education tax credit
Families across Idaho are getting another chance to apply for the state’s $50 million education tax credit program, intended for families who choose not to send their children to public schools.
The Idaho State Tax Commission said it would reopen applications for a second round at 8 a.m. Thursday. The application window will remain open through Aug. 15, or until all of the funds are depleted.
According to the most recent data, about $7 million remained in the fund after the initial round of credits. Families can apply for the tax credits if they haven’t applied for an eligible child previously. Those whose children were disallowed during the first round can’t apply again this round.
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.
Those with a modified adjusted gross income at or below 300% of the federal poverty level — or about $95,000 for a family of four — have priority. Early data showed less than half of the families who applied for the credits had incomes that fell below that line.
During the initial application period, which began in January and ran through March 15, the commission received over 6,000 applications for 10,800 students. Of those applications, 2,709 had a modified adjusted gross income at or below 300% of the federal poverty level.
More than $33 million in credits were allocated, along with $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 Tax Commission couldn’t provide more data to the Idaho Statesman about who was awarded the credits, including the number of families of students with disabilities and the total number of students whose families were awarded the credits. The commission is expected to provide the governor and Legislature a report on the program next year.
Lawmakers passed the tax credit bill last year after years of pushing for a program that would provide funds for families who don’t send their kids to public school.
