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Bill

H 93

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

68th Legislature, 1st Regular Session (2025)

Idaho's House Bill H 93 offers up to $5,000 in tax credits for parents covering education costs, boosting choices for families, especially low-income and special needs students.

Reported Signed by Governor on February 27, 2025 Session Law Chapter 9 Effective: Retroactive to 01/01/2025
#children #education #parents #schoolsandschooldistricts #students #taxandtaxation #income
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Bill Summary · H 93

Summary of House Bill H 93: Idaho Parental Choice Tax Credit

Purpose and Intent

House Bill H 93 aims to establish the Idaho Parental Choice Tax Credit, providing financial support to parents, guardians, or foster parents who incur qualified education expenses for eligible students. The bill recognizes the fundamental right of parents to choose educational services that best meet their children's needs and seeks to alleviate financial barriers to accessing these services.

Key Provisions

  • Refundable Tax Credit:

    • Parents can receive a refundable tax credit of up to $5,000 per eligible student for qualified education expenses incurred during the tax year.
    • For special needs students requiring additional support, the credit can increase to $7,500.

  • Qualified Expenses:

    • The credit covers a range of expenses, including:
    • Tuition and fees for nonpublic schools
    • Tutoring services
    • Costs for textbooks and curricula
    • Transportation costs related to academic instruction
    • Nationally standardized assessments and college admission tests

  • Eligibility Criteria:

    • Eligible students must be residents of Idaho aged 5 to 18 (or up to 21 for special needs students).
    • Families with incomes below 300% of the federal poverty level receive priority for the credit and can opt for a one-time advance payment in their first year of participation.

  • Administration:

    • The program will be administered by the Idaho State Tax Commission, which will also conduct audits to ensure compliance and prevent fraud.
    • The Tax Commission is required to report annually to the Idaho Legislature on the program's usage and demographics of applicants.

  • Application Process:

    • The application period for the tax credit will open on January 15 each year and remain open for 60 days.
    • Notifications regarding credit awards will be sent within 30 days after the application period closes.

Impact

  • Financial Implications:

    • The estimated fiscal impact is a maximum of $50 million in reduced revenue for the state General Fund due to the tax credits.
    • Initial programming costs for the Idaho State Tax Commission are projected at $125,000.

  • Employment Needs:

    • The Tax Commission will require additional staffing, including one new full-time employee and five seasonal employees during tax season, to manage the program effectively.

Procedural Aspects

  • Legislative Timeline:
    • Introduced on January 30, 2025, the bill passed through various legislative stages and was signed by the Governor on February 27, 2025.
    • The law is effective retroactively from January 1, 2025.

Conclusion

House Bill H 93 represents a significant step towards enhancing educational choice for families in Idaho by providing financial assistance for educational expenses. By establishing a structured tax credit program, the bill aims to support parents in accessing diverse educational opportunities for their children, particularly those from lower-income households and those with special needs.

Compiled from official sources — confirm details with the bill’s official record.

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