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Here’s how popular Idaho’s education tax credits were as applications began

Becca Savransky The Idaho Statesman

More than 3,300 people have applied for Idaho’s new $50 million tax credit program that directs public money toward private schools and homeschooling, the Idaho State Tax Commission said Thursday.

Applications for the program, approved last year by the Legislature, opened just after midnight Thursday and the tax commission said people started filling out applications within minutes. Thousands had applied as of 3 p.m. The commission said staff is monitoring the rollout and resolving any issues as they come up.

“This was a well-planned and well-executed implementation,” Commissioner Janet Moyle, who serves as the oversight commissioner for the program, said in a news release. “Our team worked proactively to ensure the program was ready at launch, and we remain fully available to assist families and stakeholders as they access this new opportunity.”

Last session, state lawmakers approved the bill, called the Idaho Parental Choice Tax Credit bill, after legislators tried for years to pass a law to provide funds for families who don’t send their kids to public schools.

Under the law, most eligible families can receive a refundable tax credit of up to $5,000. Parents of students with disabilities can receive up to $7,500. Qualified expenses include tuition for non-public schools, tutoring, assessments and transportation. During the application window, families who earn up to 300% of the federal poverty level have priority. For a family of four, that would be around $96,000, according to the 2025 guidelines.

Gov. Brad Little signed the bill into law last year despite efforts by education groups and families who argued against directing public money to private schools.

Those who opposed the bill said it would take funds from already struggling public schools. Idaho consistently ranks last or near last in funding per pupil. Others worried that the funds would go to schooling options with little oversight or accountability, unlike public schools. Many of Idaho’s private schools are also concentrated in more urban areas. In rural areas, public schools or homeschooling are often the only options, according to previous Statesman reporting.

Those in support of the bill said it would allow parents to choose the best options for their kids and argued that public schools don’t work for everyone. President Donald Trump also threw his support behind Idaho’s bill, saying on social media last year it “must pass.”

Last fall, advocates and groups, including the Idaho Education Association, sued over the law, asking the Idaho Supreme Court to prohibit the tax credits, according to previous Statesman reporting. They argued in a petition that Idaho’s Constitution requires the state to create a “uniform, thorough and free” system of public schools — and that diverting public funds to private options doesn’t do that.

The Supreme Court will hear arguments on Jan. 23.