Idaho Legislature refine Parental Choice Tax Credit after strong year | Opinion
Idaho’s Parental Choice Tax Credit launched with strong momentum, supported by careful and deliberate planning by the legislature. From the outset, policymakers were intentional about designing a program that would be both accessible to families and administratively workable. The program was later upheld against legal challenges in a unanimous decision by the Idaho Supreme Court, reinforcing confidence in its legal foundation. That stability was quickly followed by an overwhelming response from parents, with applications submitted for 13,568 students.
The Idaho State Tax Commission took on the responsibility of administering the program during one of the busiest times of the year: tax season. Despite the added workload, the agency rose to the occasion and responded to demand by issuing award notifications to parents a full week ahead of schedule.
This level of responsiveness highlights how state agencies can adapt quickly when a program clearly meets a need. Idaho has demonstrated how policy organizations like Mountain States Policy Center, along with state government, legislators and families, can work together to successfully implement education choice initiatives.
Thankfully, unlike many first-year, highly debated programs, execution challenges and bureaucratic friction were minimal, and only targeted changes were needed. Technical legislation (HB 934) sponsored by Rep. Jason Monks and Sen. Lori Den Hartog was passed this year to update the statute governing the Parental Choice Tax Credit Program.
Specifically, the legislation “clarifies that an eligible student may be 5 to 18 years of age at any time during the tax year; that tutoring must be for academic instruction; that advance payments may be claimed only initially; that funds are to be paid from the state refund account; what constitutes enrollment; and that curriculum may be obtained from one or more vendors, so long as the combined curriculum encompasses academic instruction.”
One of the most significant fixes redefined public school enrollment. Under the original language, parents were not eligible to claim the tax credit for any semester in which their student was enrolled in a public school, including magnet, charter, K–12 or virtual schools. During program implementation and across the town hall meetings Mountain States Policy Center hosted, it became clear that district-level policies varied widely across the state.
Much to the shock of some parents, it became known that some school districts had been enrolling homeschoolers as students because they participated in extracurricular, non-academic activities such as football, cheerleading or after-school clubs. This created a dual-enrollment issue that unintentionally disqualified a limited number of families.
The legislative fix included language to ensure that homeschool students who participate in extracurricular activities at local public schools remain eligible for the credit. The measure, signed into law on April 2, was made retroactive to Jan. 1. While unfortunately too late for parents who filed the credit for 2025, this new section will apply to parents who qualified and applied for the advance credit in 2025 and will carry forward to future years.
The legislation also clarified that students paying for courses through the Idaho Digital Learning Alliance (IDLA) are not to be considered public school students and therefore remain eligible for the tax credit. This clarification is particularly important for homeschool families who supplement their education with online or dual-enrollment college coursework. It also distinguishes these students from participants in the Advanced Opportunities program in Idaho, which provides state funding for public school students in grades 7–12 pursuing college credits.
HB 934 passed the Idaho House this year 44–24, and the Senate 23–12. The updates are an important step in continuing to support homeschool families by helping offset the cost of curriculum, textbooks, and testing fees. Parents should not be deemed ineligible for the tax credit for choosing to introduce their children to extracurricular activities or early college opportunities.
Homeschool students are active and valuable members of their communities. Participation in sports and extracurricular activities provides benefits that extend well beyond physical health. These experiences foster teamwork, build leadership skills, and strengthen self-confidence, outcomes that contribute to long-term success.
Overall, the changes made were modest but meaningful and in response to real-world implementation challenges. With these refinements in place, Idaho is well-positioned to deliver an even more streamlined and effective application process next year (hopefully, during daylight hours).
Credit is due to the dedicated state employees, policy leaders, administrators, legislators and education choice advocates who contributed to a successful inaugural launch and continued dedication to improving the program.
Meg Goudy is director of the Bill and Milly Kay Baldwin Center for Education at the Mountain States Policy Center, a research organization based in Idaho, Montana, eastern Washington and Wyoming. Online at mountainstatespolicy.org.