WeVote
Log In

Bill

Bill

H 39

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)

House Bill 39 offers Idaho parents up to $7,500 in tax credits for education expenses, empowering them to choose nonpublic schooling for their children.

Reported Printed and Referred to Revenue & Taxation
#children #education #parents #schoolsandschooldistricts #students #taxandtaxation #income
0
WeVote Research Nonpartisan
Bill Summary · H 39

Summary of House Bill 39: Idaho Parental Choice Tax Credit

Bill Number: H 39
Introduced On: January 22, 2025
Current Status: Reported Printed and Referred to Revenue & Taxation
Classification: Bill
Subject Areas: Children, Education, Parents, Schools and School Districts, Students, Tax and Taxation, Income

Purpose and Intent

House Bill 39 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 legislation recognizes the fundamental right of parents to choose educational services that meet their children's needs and seeks to alleviate the financial burden associated with nonpublic education and related expenses.

Key Provisions

  1. Tax Credit Amounts:

    • A refundable tax credit of up to $5,000 for qualified education expenses incurred on behalf of eligible students.
    • An increased credit of up to $7,500 for special needs students requiring additional support.

  2. Qualified Expenses:

    • Tuition and fees for nonpublic schools.
    • Tutoring and assessments for college admission.
    • Costs for textbooks, curricula, and transportation related to academic instruction.

  3. Eligibility Criteria:

    • Eligible students must be residents of Idaho, aged 5 to 18, and not enrolled in any public school.
    • Special needs students can be up to 21 years old and must require ancillary personnel for academic instruction.

  4. Income Considerations:

    • Families with incomes below 300% of the federal poverty level will receive priority for the tax credit.
    • These families can also opt for a one-time advance payment in their first year of participation.

  5. Administration and Oversight:

    • The Idaho State Tax Commission will administer the program, including auditing applications and ensuring compliance.
    • An annual report will be submitted to the Idaho Legislature detailing credit applications, amounts, and demographic data.

  6. Application Process:

    • Applications will be accepted annually from January 15 for a period of 60 days.
    • If the total credits claimed do not exceed the annual limit, the application period may be reopened until August 15 or until the limit is reached.

  7. Advance Payment Option:

    • Parents can elect to receive a one-time advance payment of the credit, which must be spent on qualified expenses.

Fiscal Impact

The implementation of the Idaho Parental Choice Tax Credit is projected to reduce state General Fund revenue by a maximum of $50 million. Additionally, a one-time allocation of $125,000 will be required for programming costs at the Idaho State Tax Commission, which will also need two full-time employees for program administration.

Conclusion

House Bill 39 represents a significant shift in educational funding in Idaho, aiming to empower parents with financial resources to choose educational options that best suit their children. By establishing a structured tax credit system, the bill seeks to enhance educational opportunities while ensuring accountability and oversight in the use of public funds.

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

Sign in to ask a question.