Idaho’s Parental Choice Tax Credit program has exhausted its annual $50 million spending cap, prompting the state to halt new applications before the August 15 deadline. The Idaho State Tax Commission announced Friday that the program, which provides refundable tax credits for private school students, has reached its legal limit for the year.

How the Program Works

Enacted last year through House Bill 93, the Parental Choice Tax Credit offers families up to $5,000 per non-public school student and up to $7,500 for students with special needs. There is no household limit on the number of students who can receive credits, and there are no income restrictions on eligibility.

However, the program does prioritize applicants from lower-income households. Families at or below 300% of the federal poverty level — roughly $96,450 for a family of four, meaning households earning up to around $289,350 — receive first consideration. Approximately 45% of applicants fell at or below that threshold.

Application Timeline and Volume

The first application round launched in January, leaving $7.1 million available when that window closed. The Tax Commission reopened applications in May to draw down the remaining funds, with a deadline set for August 15 or whenever the cap was reached — whichever came first.

As of Tuesday, the agency had received 7,019 applications covering 12,497 students, a figure that reflects both the program’s popularity and the lack of a per-household student limit.

Transparency Questions Arise

The Tax Commission has declined to release aggregate data on recipients while the application period remains open, citing state law as the basis for withholding that information. Commissioner Janet Moyle said that “privacy laws prohibit the commission from releasing spreadsheets used to collect data on the tax credit.”

Reporters seeking broader program data refiled a public records request Friday. The commission indicated it expects to release a full report in January, as required under state law.

What Comes Next

Families who received credits this year but have remaining eligible expenses can reapply next year for the current tax year’s costs. Beginning next year, returning recipients will gain priority access to the program before new applicants are considered — a structural change that could affect how quickly future application rounds fill the cap.

The program’s rapid uptake reflects the broader debate in Idaho over school choice and parental rights in education. With the cap now exhausted in its first full year of operation, lawmakers may face questions about whether the $50 million ceiling adequately serves demand when the Legislature returns for the 2027 session. Idaho has also been active on other education fronts, including developing its first statewide K-12 artificial intelligence standards with classroom rules expected by 2027.