Idaho’s Parental Choice Tax Credit program has exhausted its annual funding cap, the State Tax Commission announced Friday, forcing the closure of applications after the initiative distributed credits to nearly 12,500 students across the state.

The program, created through House Bill 93 last year, provides refundable tax credits of up to $5,000 per student attending non-public schools, with special needs students eligible for up to $7,500. The initiative operates under a $50 million annual budget, including administrative costs.

Applications opened in January and generated sufficient demand that the Tax Commission reopened the application window in May after the first round concluded. The second application period was set to run through August 15 or until funding was depleted, whichever came first. As of Tuesday, the agency had received 7,019 applications covering 12,497 students before the cap was reached.

The program prioritizes applicants from lower-income households. The Tax Commission approves applications first from families earning 300 percent or below the federal poverty level—approximately $96,450 for a family of four. About 45 percent of applicants fell into this income category when the program reopened in May. The program carries no income ceiling, meaning higher-earning families can also participate once lower-income applicants are processed.

Households face no restrictions on the number of students they can claim for credits. A family with two children in private school, for example, could receive credits for both.

Recipients may reapply next year for expenses incurred during the current tax year. Starting in 2027, families who received credits this year will receive priority access to the program during the new application cycle.

The Tax Commission has declined to release detailed data on who received credits and how funds were distributed. State Tax Commissioner Janet Moyle cited privacy laws as the reason for withholding spreadsheets and aggregate information, noting that a state law reporting deadline remains pending. The agency’s limited transparency has drawn attention from education advocates seeking to understand the program’s reach and impact across Idaho’s private school sector.

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