Idaho Parental Choice Tax Credit Program Reopens May 21 With More Than $7 Million Still Available

The Idaho State Tax Commission will reopen applications for the state’s Parental Choice Tax Credit program beginning Wednesday, May 21 at 8 a.m. MDT, giving eligible families another window to access funding for private and alternative education expenses.

The application window runs through August 15 at 11:59 p.m. MDT, though officials warn it could close earlier if remaining funds are fully awarded before that date. More than $7 million in program money remains available.

How the Program Works

Applications are processed on a first-come, first-served basis in the order they are received. Families can apply through a Taxpayer Access Point (TAP) account on the Tax Commission’s online portal. The program covers two separate award types: a tax credit for qualifying expenses paid during 2025, and an advance payment to be awarded in 2026.

For the 2025 tax credit, families at any income level may apply, but households with a modified adjusted gross income at or below 300 percent of the 2024 federal poverty level receive priority consideration. For the 2026 advance payment, eligibility is limited to families whose income does not exceed that same 300 percent threshold.

The award is structured as a one-time benefit per student across their entire K-12 career, provided no prior parental choice tax credit has been claimed for that child. Families who receive an advance payment are required to retain receipts for qualifying expenses, as copies must later be submitted to the Tax Commission.

Who Is — and Isn’t — Eligible

Parents who began but never finalized an application for an eligible child during the first application period may complete and submit that application now.

However, families are barred from reapplying for any child who was already awarded either an advance payment or a tax credit, and any child who received a final denial during the first round is also ineligible for reconsideration.

New Rules for the Advance Payment

A recently enacted law has modified certain program requirements, but only those affecting the 2026 advance payment — the 2025 tax credit rules remain unchanged.

Under the updated requirements, an eligible student must be at least 5 years old and no older than 19 by December 31, 2026. Students with a qualifying disability may be up to age 22 by that date.

Program funds may not be used for any semester during which a student was enrolled in a public school or publicly funded educational entity. There are exceptions, however: a student is not considered enrolled if their only participation in a public school involved non-credit activities, sports or extracurricular programs, or Idaho Digital Learning Alliance courses not funded by the state.

Where to Apply and Get Help

Applications are submitted through the TAP portal, with eligibility and application checklists available at the My School Choice website. Parents with program questions can contact the Tax Commission by email, while those experiencing TAP account issues can call the agency’s Boise-area line at (208) 334-7660 or reach the toll-free number at (800) 972-7660.

Broader Context

The Parental Choice Tax Credit is among the more prominent school choice mechanisms Idaho has enacted in recent years, directing state resources toward families who educate children outside the public school system. The program’s structure — income-based prioritization, limited per-student awards, and a first-come application model — reflects ongoing legislative debates in Idaho over how education funding is distributed across different school settings.

Those debates intersect with broader questions about state fiscal policy. Idaho lawmakers have faced competing pressures on tax relief in recent sessions, including persistent calls to reform how the state funds local services. A separate ongoing discussion over Idaho’s property tax system has drawn attention to the costs residents bear outside of income-based programs like the parental choice credit.

Families interested in applying are encouraged to review eligibility requirements before the May 21 opening, given the program’s first-come, first-served structure and the possibility the funding window may close before the August deadline.