TAXATION – Adds to existing law to establish the Idaho parental choice tax credit and Idaho Parental Choice Tax Credit Advance Payment Fund.

This Idaho bill creates a refundable tax credit allowing parents to offset education expenses for children in nonpublic schools (including private schools, microschools, and learning pods). It provides up to $5,000 per eligible student annually ($7,500 for students with disabilities) for qualified costs like tuition, textbooks, and transportation, with an advance payment option for families earning under 300% of the federal poverty level. Parents must apply through the state tax commission, with priority given to low-income families and returning applicants. The credit applies retroactively to January 2025 and covers kindergarten through grade 12 education for Idaho residents aged 5-18 (or up to 21 for students with disabilities).