Idaho Education Funding Programs: The Parental Choice Tax Credit Explained for 2026 and 2027

Quick answer: Idaho’s main education funding program for parents is the Idaho Parental Choice Tax Credit, a refundable state income tax credit of up to $5,000 per eligible student, or up to $7,500 for a student with a qualifying disability, for qualified expenses such as nonpublic school tuition, curricula, textbooks, core-subject tutoring, transportation and certain exams. You must apply and be awarded the credit before claiming it. The program has a $50 million annual cap; the 2026 application period closed on July 17, 2026, after the limit was reached. Under state law, the next application period opens January 15, 2027, with priority for prior-year recipients and then lower-income families. Lower-income families can request a one-time advance payment instead of waiting for a tax refund.

Idaho moved into the school choice landscape later than many of its neighbors and chose a different tool. Instead of an education savings account run by the state, Idaho uses a refundable tax credit that reimburses parents for education expenses they pay, with an advance payment option for families who cannot wait.

This guide explains who qualifies, how much the credit is worth, which expenses count, how the application and cap work, what the advance payment requires and what the program means for homeschooling families. For how Idaho compares with other states, see our guide to state education funding programs for parents.

Sources: Idaho Code section 63-3029N (Idaho Parental Choice Tax Credit, as amended in 2026); Idaho State Tax Commission, Parental Choice Tax Credit and Advance Payment guidance and July 17, 2026 news release; Idaho My School Choice website; Idaho Senate Bill 1142 (2025) repealing the Empowering Parents program. Rules, dates and limits can change each legislative session. This is general information, not tax or legal advice. Last verified October 2026.

How Idaho's Program Is Different

Most state school choice programs fall into three types: education savings accounts, vouchers and tax-credit scholarships funded by donors. Our explainer on ESAs vs. vouchers vs. tax-credit scholarships covers those models.

Idaho’s Parental Choice Tax Credit is none of those exactly. It is a refundable individual income tax credit paid directly to parents for expenses they incur. Because it is refundable, a family with little or no Idaho income tax can still receive the full credit as a refund. The Tax Commission administers it, not the Department of Education.

Key features at a glance

Feature	Idaho Parental Choice Tax Credit
Type	Refundable state income tax credit
Maximum per student	$5,000
Maximum for qualifying disability	$7,500
Annual program cap	$50 million
Application period	Opens January 15 for 60 days; may reopen until August 15 if funds remain
Advance payment	One-time option for families at or below 300% of the federal poverty level
Administered by	Idaho State Tax Commission

Who Is Eligible

Under Idaho Code section 63-3029N, an eligible student is:

• A full-time Idaho resident who is 5 to 18 years old at any time during the tax year, or
• A child with disabilities requiring ancillary personnel, as defined in Idaho law, who is 5 to 21 years old during the tax year.

The parent claiming the credit must be a full-time Idaho resident who claims the student as a dependent on an Idaho individual income tax return. Parents, legal guardians and licensed foster parents in good standing can qualify.

Public school enrollment rule

You cannot claim the credit for any semester in which the student was enrolled full-time or part-time in a public school, public charter school, public virtual charter school, public magnet school or part-time public kindergarten. The statute lists activities that do not count as enrollment, including:

• Participating in public school sports or extracurricular activities.
• Taking activities or instruction for which no academic credit is awarded.
• Transferring between nonpublic schools during the year.
• Homeschooling.
• Taking fee-based Idaho Digital Learning Academy courses not included in state enrollment funding.

No income limit for the regular credit

There is no income cap to apply for the credit itself. Income affects priority when applications exceed the cap and eligibility for the advance payment.

How Much the Credit Is Worth

The credit equals qualified expenses you pay, up to $5,000 per eligible student per tax year. For a student who is a child with disabilities requiring ancillary personnel, the limit rises to $7,500. To claim the higher amount, parents document the student’s diagnosis or other determination by an Idaho licensed health care provider, or the student’s eligibility for services under an individualized education program (IEP).

Under state law, the credit and the advance payment are not Idaho taxable income. The Tax Commission notes that an advance payment awarded in 2026 is taxable on your federal return for 2026, so talk with a tax professional about your situation.

Qualified Expenses

The statute and Tax Commission guidance list these qualified expenses:

• Tuition or fees for a K-12 nonpublic school.
• Curricula, which may come from more than one vendor beginning in 2026, as long as it covers no more than K-12 academic instruction.
• Textbooks.
• Tutoring in academic instruction, meaning the four core subjects of English language arts, mathematics, science and social studies.
• Transportation to and from a facility for K-12 academic instruction, including public transportation, ridesharing and personal vehicles reimbursed at the state employee mileage rate.
• Testing: nationally standardized assessments and preparatory courses for them, college admission exams, Advanced Placement exams and industry-recognized certification exams.

According to the Tax Commission, there is no specific list of qualifying products, and the agency cannot prequalify expenses. Other kinds of expenses are not mentioned in the legislation, so items such as general supplies, electronics, field trips or therapies are not listed.

What a nonpublic school means in Idaho

Under the statute, a nonpublic school is a private school, microschool or learning pod providing academic instruction in the four core subjects, in person, online or both. The instruction must be provided by an accredited school or documented in a portfolio or learning record showing the student’s growth, kept in case of audit.

Records you must keep

You must be the one who paid the expense, and you need paid invoices or receipts showing the provider, what was purchased, the amount, that you paid it and when. For transportation, keep a log of dates, locations and miles.

What It Means for Homeschoolers

Homeschooling does not count as public school enrollment under the statute, so it does not by itself disqualify a family. However, the credit cannot be claimed for tuition or fees for instruction provided by the parent to their own child. Families who buy curricula, textbooks, outside core-subject tutoring or qualifying exams should review the current My School Choice guidance and keep documentation that the instruction covers the four core subjects.

Idaho has relatively light homeschool requirements compared with many states. Our guide to homeschool laws by state explains how to find and follow your state’s rules, and our article on whether homeschoolers can use state education funds compares how states treat home education.

If you are weighing curriculum options, families use everything from complete boxed programs to online platforms such as Miacademy; whatever you choose, keep the invoice and a record of the subjects covered.

How to Apply

Application timing

Starting in 2026, the application period opens each year on January 15 and stays open for 60 days. If completed applications do not use the $50 million cap, the Tax Commission reopens applications until August 15 or until the cap is reached, whichever comes first. In 2026, the Tax Commission announced on July 17, 2026, that it had closed the application period because the program reached its limit of nearly $50 million.

Based on the statute, the next application period opens January 15, 2027. Check the state’s official My School Choice website for the current application and instructions.

Priority rules

When applications exceed the cap:

• For 2026 applications, priority went to parents with modified adjusted gross income at or below 300% of the federal poverty level.
• Starting in 2027, priority goes first to parents who received a credit in the prior year, then to parents whose taxable income is at or below 300% of the federal poverty level.
• Remaining applicants are funded first come, first served until the cap is reached, and the Tax Commission keeps a waiting list.

Applying early in the window matters for families without priority status.

Steps

1. Review eligibility and qualified expenses on My School Choice.
2. Gather the student’s information, your most recent Idaho tax return and estimates of expenses.
3. Submit the application during the window. You submit expected expenses so the state can gauge demand; this does not preapprove them.
4. Wait for notification. The statute requires notice within 30 days after the application period closes.
5. If awarded, keep paid invoices and receipts for every expense.
6. Claim the credit on your Idaho Form 40 for that tax year, or reconcile your advance payment.

You cannot claim the credit on your return unless you applied and were awarded it.

The Advance Payment Option

Families who cannot wait for a tax refund may elect a one-time advance payment of the credit.

• It is available only to parents whose modified adjusted gross income is at or below 300% of the federal poverty level.
• It is available only if a credit was not claimed for the student the previous year.
• A student can receive an advance payment only once in their entire K-12 career, and once a student is awarded a credit, the student cannot receive an advance payment later.
• Payment is due within 60 days of award notification, generally no later than August 30. The Tax Commission said second-period 2026 advance payments would arrive by November 14, 2026.
• Families must later reconcile the money with receipts. For 2026 advances, reconciliation is due in the Tax Commission’s online TAP dashboard by December 31, 2027.
• Money spent on nonqualifying expenses, or without proper receipts, must be repaid, and penalties and interest may apply.

Other Rules to Know

• Only one parent may claim the credit for a student each year.
• Parents who received a credit must complete a satisfaction and engagement survey to remain eligible in later years.
• Participation is a parental placement under the federal Individuals with Disabilities Education Act (IDEA). The application must explain what rights parentally placed students keep, including eligibility for equitable services.
• Nonpublic schools are not required to change their creed, practices, admissions policies or curriculum to accept students using the credit.
• Providing false information is considered tax fraud and can carry civil and criminal penalties.

What Happened to Empowering Parents Grants

Idaho previously ran the Empowering Parents grant program, which offered up to $1,000 per eligible student and $3,000 per family for education expenses through an online marketplace. Senate Bill 1142, signed in 2025, repealed the program effective July 1, 2025. According to the program’s website, existing grants remain usable for three years from the award date, so 2024 grants expire in 2027 and 2025 grants in 2028. Expenses paid with Empowering Parents grant funds cannot also be claimed for the Parental Choice Tax Credit.

Planning a Year With the Credit

Because the credit reimburses expenses after the fact for most families, plan cash flow carefully:

• Estimate tuition, curriculum and tutoring costs before you apply.
• Track receipts as you go in a single folder or spreadsheet.
• Remember the credit is capped per student, not per family.
• If you depend on the advance payment, note the reconciliation deadline.
• Revisit eligibility each January because rules and priority status change.

Our overview of what education savings account funds can pay for is a helpful comparison if you are considering a move to a state with an ESA.

Frequently Asked Questions

How much is the Idaho Parental Choice Tax Credit?

Up to $5,000 per eligible student per year, or up to $7,500 for a student with a qualifying disability, based on qualified expenses you pay.

When can I apply for the Idaho Parental Choice Tax Credit?

Under state law, the application period opens January 15 each year for 60 days and can reopen until August 15 if funds remain. The 2026 period closed July 17, 2026, when the cap was reached, and the next period opens January 15, 2027.

Can homeschoolers use the Idaho Parental Choice Tax Credit?

Homeschooling does not count as public school enrollment, but parents cannot claim tuition for instruction they provide themselves. Curricula, textbooks, outside core-subject tutoring and qualifying exams may count if program rules are met.

Is there an income limit?

There is no income limit for the regular credit. Income at or below 300% of the federal poverty level affects priority and is required for the advance payment.

Is the Idaho Parental Choice Tax Credit taxable?

Under Idaho law it is not Idaho taxable income. The Tax Commission says 2026 advance payments are taxable on federal returns, so ask a tax professional.

The Bottom Line

Idaho’s Parental Choice Tax Credit can return up to $5,000 per child, or $7,500 for a child with a qualifying disability, for private school tuition, curricula, tutoring and related costs. Demand reached the $50 million cap in 2026, so apply as soon as the window opens on January 15, 2027, keep every receipt and confirm details on the state’s My School Choice website.