Idaho's school choice tax credit has $7 million balance after first application window

The Idaho State Tax Commission has released preliminary details on the expenditures for the first year of Idaho implementing its $50 million school choice tax credit. 

The application window for the tax credit closed on March 15. Though the Idaho State Tax Commission is continuing to process applications, the breakdown of the tax credit's utilization as of Tuesday is as follows:

• Tax credits awarded: $33.4 million (67.71%).

• Advance payments awarded: $8.84 million (17.91%).

• Available balance: $7.09 million (14.37%).

Idaho's program requires the Idaho State Tax Commission to reopen the application window if all funds have not yet been expended. Though a set reopening date has yet to be announced, the law states new applications can be accepted until Aug. 15 or until the credit’s annual maximum limit is reached, whichever is first.

The tax credit was initially passed in 2025 and represented the first instance in the state of Idaho where public funds were able to be utilized to fund private and religious K-12 education. The credit is limited to nonpublic schools — including private and microschools — that must be either accredited institutions or provide documentation of a “learning record that indicates the student’s growth.”

The program provides a refundable tax credit of up to $5,000 per eligible student and up to $7,500 per eligible disabled student. Qualifying expenses covered by the tax credit include fees for attending a nonpublic school, tutoring, standardized assessments, textbooks, curricula and transportations costs.

Parents with taxable incomes that don’t exceed 300% of the federal poverty level are able to receive advanced payment to pay for either a portion or the entirety of an eligible student’s qualifying educational expenses.

According to Renee Eymann, a public information officer with the Idaho State Tax Commission, 2,709 applications out of a total of 6,069 had a modified adjusted gross income at or below this value.  

According to the Department of Health and Human Services' 2026 Poverty Guidelines, a family of four earning $33,000 would be at the federal poverty level, making $99,000 the equivalent 300% threshold.

With 2026 being the first year the tax credits were issued, the Idaho State Tax Commission prioritized parents whose income fell below 300% of the federal poverty line. Starting in 2027, priority will be given to families who received a credit in the previous year, followed by families whose taxable income does not exceed 300% of the federal poverty level. 

The tax credit program’s current outstanding balance is subject to change as the Idaho State Tax Commission continues to work through applications.

A wider report on the utilization of the tax credit will be provided to the Idaho Legislature and the governor in January, Eymann said in an emailed statement.