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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
SENATE
SENATE
BILL
NO.
1281
BY
EDUCATION
COMMITTEE
AN
ACT
1
RELATING
TO
THE
IDAHO
PARENTAL
CHOICE
TAX
CREDIT;
AMENDING
SECTION
63
-
3029N,
2
IDAHO
CODE,
TO
REVISE
A
PROVISION
REGARDING
THE
TOTAL
AMOUNT
OF
TAX
3
CREDITS
AUTHORIZED
FOR
ALL
TAXPAYERS;
AND
DECLARING
AN
EMERGENCY.
4
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
5
SECTION
1.
That
Section
63
-
3029N,
Idaho
Code,
be,
and
the
same
is
hereby
6
amended
to
read
as
follows:
7
63
-
3029N.
IDAHO
PARENTAL
CHOICE
TAX
CREDIT.
(1)
There
is
hereby
estab
-
8
lished
the
Idaho
parental
choice
tax
credit.
9
(2)
For
the
purpose
of
this
section:
10
(a)
"Academic
instruction"
means
kindergarten
through
grade
12
in
-
1
1
struction
that
includes,
at
a
minimum,
English
language
arts,
mathemat
-
12
ics,
science,
and
social
studies.
13
(b)
"Eligible
student"
means:
14
(i)
A
full
-
time
resident
of
Idaho
who
is
five
(5)
to
eighteen
(18)
15
years
of
age;
or
16
(ii)
A
child
with
disabilities
requiring
ancillary
personnel
as
17
defined
in
section
33
-
2001,
Idaho
Code,
who
is
five
(5)
to
twenty
-
18
one
(21)
years
of
age.
19
(c)
"Federal
poverty
level"
means
the
federal
poverty
guidelines
pub
-
20
lished
and
updated
annually
by
the
United
States
department
of
health
21
and
human
services.
22
(d)
"Nonpublic
school"
means
a
private
school,
microschool,
or
learn
-
23
ing
pod
that
provides
academic
instruction
to
eligible
students,
which
24
academic
instruction
may
be
provided
in
person,
online,
virtually,
or
25
through
any
combination
thereof,
and
such
academic
instruction
is:
26
(i)
Provided
by
an
accredited
school;
or
27
(ii)
Documented
in
a
portfolio
of
evidence
or
learning
record
that
28
indicates
the
student's
growth.
Records
of
the
instruction
shall
29
be
retained
sufficient
to
establish
that
the
instruction
meets
30
the
requirements
of
paragraph
(a)
of
this
subsection
and
shall
be
31
available
in
the
case
of
any
audit
by
the
state
tax
commission.
32
(e)
"Parent"
means
an
eligible
student's
parent,
legal
guardian,
or
33
foster
parent,
if
such
foster
parent
is
licensed
and
in
good
standing
34
pursuant
to
chapter
12,
title
39,
Idaho
Code.
35
(f)
"Qualified
expenses"
means
kindergarten
through
grade
12
tuition
36
or
fees
for
attending
a
nonpublic
school,
tutoring,
nationally
stan
-
37
dardized
assessments,
assessments
used
to
determine
college
admission,
38
advance
placement
examinations,
industry
-
recognized
certification
ex
-
39
ams,
and
preparatory
courses
for
nationally
standardized
assessments.
40
"Qualified
expenses"
also
means
costs
for
textbooks,
curricula
used
for
41
kindergarten
through
grade
12
academic
instruction,
and
transporta
-
42
2
tion
costs
to
and
from
a
facility
incurred
for
the
purposes
of
receiving
1
kindergarten
through
grade
12
academic
instruction,
including
public
2
transportation,
ridesharing,
and
the
use
of
privately
owned
vehicles,
3
for
which
reimbursement
shall
use
the
mileage
rate
applicable
to
state
4
employee
travel
in
effect
at
the
time
the
travel
occurs.
"Qualified
ex
-
5
penses"
shall
not
include
expenses
paid
with
funds
received
from
a
grant
6
under
section
33
-
1031,
Idaho
Code,
or
reimbursement
pursuant
to
section
7
33
-
4603,
Idaho
Code.
8
(3)
The
Idaho
parental
choice
tax
credit
shall
be
administered
as
pro
-
9
vided
in
this
section.
For
tax
year
2025
and
subsequent
tax
years,
there
10
shall
be
allowed
a
refundable
tax
credit
up
to
five
thousand
dollars
($5,000)
1
1
per
eligible
student
against
the
tax
imposed
by
this
chapter
for
any
parent:
12
(a)
Who
incurs
qualified
expenses
of
up
to
five
thousand
dollars
13
($5,000)
per
eligible
student
during
the
tax
year,
if
each
eligible
14
student
is
a
dependent
and
is
properly
claimed
on
the
parent's
full
-
time
15
Idaho
resident
individual
income
tax
return;
and
16
(b)
Who
timely
and
properly
files
an
application.
17
(4)
The
state
tax
commission
shall
prescribe
forms
for
the
purpose
of
18
applying
for
and
claiming
the
credit
authorized
by
this
section.
The
forms
19
shall
identify
the
civil
and
criminal
penalties
provided
in
sections
63
-
3046
20
and
63
-
3075,
Idaho
Code,
for
providing
false
and
fraudulent
tax
information
21
and
shall
require
the
parents
to
affirm
under
oath
that
the
information
sub
-
22
mitted
in
the
form
is
true
and
accurate.
The
forms
shall
also
require
any
23
parent
who
has
previously
received
a
credit
authorized
by
this
section
to
24
certify
and
attach
evidence
that
the
parent
completed
the
satisfaction
and
25
engagement
survey
required
under
subsection
(14)
of
this
section.
Begin
-
26
ning
in
January
2026,
and
each
year
thereafter,
the
application
period
shall
27
open
on
January
15
and
shall
remain
open
for
a
period
of
sixty
(60)
days.
The
28
state
tax
commission
shall
notify
parents
whether
they
will
receive
a
credit
29
award.
Such
notification
must
be
within
thirty
(30)
days
of
the
close
of
the
30
application
period.
31
(5)
The
state
tax
commission
shall
calculate
the
total
amount
of
cred
-
32
its
claimed
in
completed
applications
that
qualify
under
subsection
(3)
of
33
this
section.
If
the
total
amount
does
not
exceed
the
annual
maximum
limit
34
provided
in
subsection
(12)
of
this
section,
the
state
tax
commission
shall
35
re
-
open
the
application
period
to
receive
new
applications.
Such
applica
-
36
tions
shall
be
accepted
until
August
15
or
until
the
annual
maximum
limit
is
37
reached,
whichever
is
first.
38
(6)
Credits
shall
be
issued
on
a
yearly
basis.
For
applications
re
-
39
ceived
in
2026,
the
state
tax
commission
shall
give
priority
to
parents
whose
40
modified
adjusted
gross
income
as
indicated
on
their
most
recently
filed
tax
41
return
does
not
exceed
three
hundred
percent
(300%)
of
the
federal
poverty
42
level.
Starting
in
the
2027
application
period,
the
state
tax
commission
43
shall
give
priority
status
to
applications
from
parents
who
received
a
44
credit
in
the
prior
year,
followed
by
parents
whose
taxable
income
as
indi
-
45
cated
on
their
most
recently
filed
tax
return
does
not
exceed
three
hundred
46
percent
(300%)
of
the
federal
poverty
level.
47
(7)
The
refundable
tax
credit
limit
under
subsection
(3)
of
this
sec
-
48
tion
shall
be
increased
to
seven
thousand
five
hundred
dollars
($7,500)
for
49
each
eligible
student
up
to
twenty
-
one
(21)
years
of
age
who
is
also
con
-
50
3
sidered
a
child
with
disabilities
requiring
ancillary
personnel
as
defined
1
in
section
33
-
2001,
Idaho
Code.
Parents
claiming
an
increased
credit
under
2
this
subsection
shall
document
the
student's
diagnosis
or
other
determina
-
3
tion
made
by
an
Idaho
licensed
health
care
provider
or
the
student's
eligi
-
4
bility
for
services
under
an
individualized
education
program
in
accordance
5
with
the
federal
individuals
with
disabilities
education
act.
6
(8)
The
refundable
tax
credit
provided
in
this
section,
including
the
7
advance
payment,
shall
not
constitute
Idaho
taxable
income.
8
(9)
The
application
forms
pursuant
to
subsection
(4)
of
this
section
9
shall
permit
parents
to
elect
a
onetime
advance
payment
of
the
credit
for
10
each
eligible
student.
When
a
parent
elects
to
receive
an
advance
payment
1
1
pursuant
to
this
subsection,
the
credit
shall
be
issued
in
one
(1)
install
-
12
ment,
to
be
paid
within
sixty
(60)
days
of
notifying
a
parent
of
such
credit
13
award
but
not
later
than
August
30.
The
state
tax
commission
shall
approve
14
advance
payments
only
for
eligible
students
whose
parents'
modified
ad
-
15
justed
gross
income
as
indicated
on
their
most
recently
filed
tax
return
16
does
not
exceed
three
hundred
percent
(300%)
of
the
federal
poverty
level.
17
Advance
payments
made
under
this
subsection
may
be
spent
only
on
qualified
18
expenses
for
which
the
parent
may
claim
a
credit
under
the
provisions
of
this
19
section.
In
order
to
enable
parents
whose
modified
adjusted
gross
income
20
does
not
exceed
three
hundred
percent
(300%)
of
the
federal
poverty
level
to
21
pay
for
a
student's
education,
an
advance
payment
that
is
expended
on
quali
-
22
fied
expenses
for
an
eligible
student
may
be
claimed
for
such
expenditure
in
23
that
year
and
a
parental
choice
tax
credit
shall
be
allowed
on
a
parent's
tax
24
return
for
that
year,
subject
to
the
remaining
requirements
of
this
chapter.
25
(10)
Parents
claiming
the
Idaho
parental
choice
tax
credit
shall:
26
(a)
Claim
the
credit
for
only
qualified
expenses
incurred
on
behalf
of
27
an
eligible
student;
28
(b)
Not
claim
the
credit
for
any
semester
in
which
a
student
was
29
enrolled
full
-
time
or
part
-
time
in
a
public
school,
public
char
-
30
ter
school,
public
virtual
charter
school,
public
magnet
school,
or
31
part
-
time
public
kindergarten.
32
(c)
Not
claim
the
credit
for
any
tuition
or
fees
related
to
academic
in
-
33
struction
provided
by
the
parent
to
such
parent's
eligible
student;
34
(d)
Ensure
no
other
parent
claims
a
credit
for
an
eligible
student.
In
35
the
event
more
than
one
(1)
parent
claims
a
credit
under
this
section
for
36
the
same
eligible
student
in
the
same
year,
the
provisions
of
section
37
63
-
3029L(2),
Idaho
Code,
shall
be
used
to
determine
which
parent
is
en
-
38
titled
to
receive
the
credit;
and
39
(e)
Fill
out
and
submit
the
satisfaction
and
engagement
survey
provided
40
for
in
subsection
(14)
of
this
section.
No
parent
shall
be
eligible
to
41
receive
a
credit
under
the
provisions
of
this
section
in
a
subsequent
42
year
if
such
parent
has
not
submitted
such
survey
for
the
last
year
that
43
such
parent
received
the
credit.
44
(11)
If
the
credit
exceeds
the
tax
imposed
by
this
chapter,
the
excess
45
credit
amount
shall
be
refunded
to
the
taxpayer.
The
state
tax
commission
46
shall
design
the
tax
return
forms
to
account
for
advance
payment
of
the
47
credit
when
calculating
the
tax
imposed
by
this
chapter.
48
(12)
The
total
amount
of
tax
credits
authorized
for
all
taxpayers
under
49
this
section
shall
not
exceed
forty
-
eight
million
dollars
($48,000,000)
50
4
in
tax
year
2026,
forty
seven
million
five
hundred
thousand
dollars
1
($47,500,000)
in
tax
year
2027,
and
fifty
million
dollars
($50,000,000)
each
2
tax
year
thereafter
.
In
the
event
the
total
amount
of
claims
for
tax
credits
3
allowed
by
this
section
exceeds
forty
-
eight
million
dollars
($48,000,000)
4
in
tax
year
2026,
forty
seven
million
five
hundred
thousand
dollars
5
($47,500,000)
in
tax
year
2027,
or
fifty
million
dollars
($50,000,000)
6
thereafter
,
the
credits
shall
be
allowed
in
full
to
parents
whose
appli
-
7
cations
were
properly
and
timely
filed
and
who
have
priority
status
under
8
subsection
(6)
of
this
section,
followed
by
the
remaining
parents
who
filed
9
complete
applications
on
a
first
-
come,
first
-
served
basis,
until
the
an
-
10
nual
maximum
limit
is
reached.
The
state
tax
commission
shall
create
and
1
1
maintain
a
waiting
list
demonstrating
who
would
be
eligible
on
a
first
-
come,
12
first
-
served
basis
if
the
annual
maximum
limit
for
credits
allowed
under
13
this
section
is
increased.
14
(13)(a)
Beginning
with
the
first
regular
session
of
the
sixty
-
ninth
15
Idaho
legislature
in
2027,
the
state
tax
commission
shall
provide
an
16
annual
report
to
the
governor,
the
senate
local
government
and
taxation
17
committee,
the
house
revenue
and
taxation
committee,
and
the
joint
fi
-
18
nance
-
appropriations
committee
that
shall
include:
19
(i)
The
total
amount
of
tax
credits
provided
each
year
under
this
20
section;
21
(ii)
The
number
of
parents
who
applied
each
year
for
the
Idaho
22
parental
choice
tax
credit;
23
(iii)
The
amount
of
the
average
tax
credit
allowed;
24
(iv)
The
number
of
credits
distributed
to
parents
with
an
adjusted
25
gross
income
below
three
hundred
percent
(300%)
of
the
federal
26
poverty
level;
27
(v)
The
number
of
parents
who
applied
each
year
for
the
advance
28
payment
pursuant
to
subsection
(9)
of
this
section,
the
number
of
29
advance
payments
awarded,
and
the
median
amount
of
the
advance
30
payments
awarded;
31
(vi)
The
geographic
area
of
parents
applying
for
the
credit;
32
(vii)
The
number
of
eligible
students
on
the
waiting
list
for
each
33
year;
and
34
(viii)
A
list
of
the
categories
of
qualified
expenses
for
which
35
recipients
used
the
tax
credit,
which
shall
include
the
dollar
36
amounts
for
each
category
listed
in
subsection
(2)(f)
of
this
sec
-
37
tion.
38
(b)
The
report
shall
not
include
any
personally
identifying
informa
-
39
tion
of
eligible
students,
their
parents,
or
their
households.
40
(14)
Beginning
in
2026,
and
each
year
thereafter,
the
legislative
ser
-
41
vices
office
shall
deliver
to
each
parent
who
has
received
a
tax
credit
under
42
the
provisions
of
this
section
a
parent
satisfaction
and
engagement
survey
43
to
evaluate
the
performance
of
the
nonpublic
school
that
the
eligible
stu
-
44
dent
attended.
The
survey
shall
include
but
not
be
limited
to
the
quality
of
45
school
leadership,
school
safety,
student
engagement,
quality
of
academic
46
instruction,
and
quality
of
learning
outcomes.
The
state
tax
commission
47
shall
provide
the
legislative
services
office
with
contact
information
to
48
identify
each
parent
receiving
a
credit
and
any
other
information
required
49
for
the
legislative
services
office
to
properly
deliver
the
surveys
required
50
5
under
this
subsection,
and
shall
deliver
the
surveys
to
the
parents
no
later
1
than
January
15
each
year.
Each
parent
shall
complete
the
survey
and
submit
2
the
completed
survey
to
the
legislative
services
office
no
later
than
March
3
15.
Beginning
in
2027,
the
legislative
services
office
shall
submit
a
report
4
to
the
governor,
the
senate
local
government
and
taxation
committee,
the
5
house
revenue
and
taxation
committee,
and
the
joint
finance
-
appropriations
6
committee
that
shall
include
a
summary
of
the
survey
results.
7
(15)
Any
taxpayer
receiving
an
advance
payment
or
claiming
a
tax
credit
8
without
submission
of
a
timely
and
properly
prescribed
form
shall
be
ineli
-
9
gible
to
receive
such
payment
or
claim
such
credit.
The
state
tax
commission
10
shall
deny
or
recapture
credits
claimed
by
a
parent
for
expenditures
not
au
-
1
1
thorized
by
the
provisions
of
this
section.
If
a
parent
has
received
an
ad
-
12
vance
payment
for
an
eligible
student
in
a
previous
year,
the
parent
shall
13
not
claim
the
credit
for
qualified
expenses
incurred
in
a
year
that
a
stu
-
14
dent
ceases
to
qualify
as
an
eligible
student,
except
for
any
portion
of
the
15
credit
that
exceeds
the
amount
of
the
advance
payment
received.
If
a
student
16
ceases
to
qualify
as
an
eligible
student
and
the
parent
has
already
received
17
the
credit
for
that
year,
an
amount
of
the
credit,
not
exceeding
the
amount
18
of
the
advance
payment
received,
shall
be
repaid
to
or
recovered
by
the
state
19
tax
commission
and
deposited
into
the
general
fund.
20
(16)
Parents
who
claim
the
credit
on
a
tax
return
without
receiving
21
prior
approval
of
an
application
may
not
receive
a
credit,
and
the
state
22
shall
have
no
liability
to
such
parent.
23
(17)
The
state
tax
commission
shall,
in
as
close
to
real
time
as
practi
-
24
cable,
make
available
on
its
website
the
annual
maximum
limit,
the
cumula
-
25
tive
amount
of
credits
claimed
in
applications
under
this
section,
and
the
26
cumulative
amount
of
advance
payments
issued
under
this
section
until
the
27
annual
maximum
limit
is
reached.
28
(18)
The
state
tax
commission
shall
also
keep
records
of
the
total
ap
-
29
plications
for
credits
and
total
claim
of
credits
that
exceed
the
annual
max
-
30
imum
limit.
31
(19)
The
state
tax
commission
shall
ensure
that
parents
of
eligible
32
students
receive
notice
in
the
application
that
participation
in
the
program
33
is
a
parental
placement
under
20
U.S.C.
1412
of
the
federal
individuals
with
34
disabilities
education
act,
along
with
an
explanation
of
the
rights
that
35
parentally
placed
students
possess
under
the
federal
individuals
with
dis
-
36
abilities
education
act,
including
eligibility
for
equitable
services,
and
37
any
applicable
state
laws
and
regulations.
38
(20)
The
provisions
of
this
section
shall
not
be
construed
to
permit
39
any
government
agency
to
exercise
control
or
supervision
over
any
nonpublic
40
school
or
to
give
the
state
authority
to
regulate
the
education
of
nonpublic
41
school
students.
A
nonpublic
school
that
enrolls
a
student
whose
parent
42
directs
a
refundable
tax
credit
to
the
school
pursuant
to
this
section
is
not
43
an
agent
of
the
state
or
federal
government.
A
nonpublic
school
shall
not
44
be
required
to
alter
its
creed,
practices,
admissions
policy,
or
curriculum
45
in
order
to
accept
students
whose
payment
of
tuition
or
fees
stems
from
a
46
refundable
tax
credit
under
this
section.
47
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
48
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
its
49
passage
and
approval.
50