Idaho House Bill 93: What the Parental Choice Tax Credit Law Actually Says

The Law Behind Idaho's School Choice Tax Credit

House Bill 93, signed during Idaho's 2025 legislative session, created the Parental Choice Tax Credit under Idaho Code Section 63-3029N. It's a refundable individual income tax credit — meaning if the credit exceeds your state tax liability, Idaho sends you the difference as a direct payment. The program is administered by the Idaho State Tax Commission, not the Department of Education.

The core structure: full-year Idaho residents with children who are not enrolled in public school can claim up to $5,000 per student per year ($7,500 for students with qualifying disabilities) for nonpublic education expenses. The legislature set a $50 million annual cap on total credits issued statewide.

What HB 93 Covers

The statute defines five categories of qualified expenses:

1. Tuition and fees at eligible nonpublic schools, microschools, or learning pods
2. Core-subject curriculum — textbooks, workbooks, and instructional software covering English language arts, math, science, and social studies
3. Academic tutoring in those four core subjects, provided by someone who is not a member of the student's household
4. Standardized testing — achievement tests, AP exams, SAT/ACT fees, and industry certification exams
5. Transportation to and from a nonpublic school or instructional facility, documented with a mileage log

The law explicitly bars parents from claiming reimbursement for their own teaching time. It also prohibits claiming expenses already covered by the Empowering Parents grant program.

The 2026 Amendment: House Bill 934

The Idaho Legislature passed HB 934 in 2026 to refine the program's administration. Two changes matter for families:

Multi-developer curriculum: Starting with tax year 2026, families can assemble their core curriculum from multiple independent publishers rather than purchasing a single comprehensive package. If you use one publisher for math and a different one for science, both qualify.

Advance payment streamlining: HB 934 repealed the standalone Parental Choice Tax Credit Advance Payment Fund (previously under Idaho Code Section 67-1230) and routed all disbursements through the state's primary tax processing channels. The advance payment option still exists for families at or below 300% of the Federal Poverty Level — the change was administrative, not substantive.

The Constitutional Challenge

HB 93 faced immediate legal challenge. In Committee to Protect and Preserve the Idaho Constitution v. State of Idaho, a coalition of public school advocates, teachers' unions, and school districts argued the law violated Article IX, Section 1 of the Idaho Constitution — the state's duty to maintain public schools — and the public purpose doctrine.

On February 5, 2026, the Idaho Supreme Court issued a unanimous decision upholding the law. The Court held that the constitutional duty to maintain public schools doesn't restrict the legislature's authority to enact tax policies supporting diverse educational options. The ruling also confirmed that facilitating parental choice serves a valid public purpose.

The program's legal status is settled. Award disbursements proceeded on schedule after the ruling.

Priority Rules and the $50 Million Cap

The $50 million cap creates a competition for funds. HB 93 sets the priority order by application period:

Applications received in 2026 (for the 2025 tax credit): Families with modified adjusted gross income at or below 300% of the Federal Poverty Level get first priority during the January 15 – March 15 window. For a family of four, the threshold used 2024 guidelines ($93,600). Higher-income families are accepted but waitlisted — their applications process only after priority applicants, in the order received if funds remain.

Starting with the 2027 application period (for the 2026 tax credit): Eligible parents who received a credit in 2026 and submitted the required satisfaction and engagement survey get first priority, followed by other applicants whose taxable income on their most recently filed return does not exceed 300% of the Federal Poverty Level ($96,450 for a family of four using 2025 guidelines). Remaining complete applications are processed by submission order if funds remain.

The Federal Layer: FSTC and HB 731

Idaho opted into the Federal Scholarship Tax Credit (FSTC) through House Bill 731, codified as Idaho Code Section 33-144. Starting in 2027, eligible taxpayers can claim a federal tax credit — up to $1,700 for individual filers, $3,400 for joint filers — for contributions to registered Scholarship Granting Organizations. Those organizations then award K–12 scholarships.

This runs alongside the state credit, not instead of it. The state credit reimburses your family's direct spending. The federal credit incentivizes donations to scholarship funds that help other families.

What This Means for Your Family

HB 93 and its amendments create a straightforward framework: spend on qualifying nonpublic education expenses, document everything, apply through the TAP portal during the annual window, and claim the credit on your Idaho Form 40. The Idaho Parental Choice Tax Credit Parent Guide translates the full statutory framework into the application steps, expense tracking system, and filing process you need to actually claim your credit.

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