Idaho Supreme Court Upholds Parental Choice Tax Credit

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The Idaho Supreme Court has upheld the state's new parental choice tax credit program, rejecting a legal challenge that sought to block its implementation. The court ruled that the tax credit, which allows eligible families to claim up to $5,000 per student or $7,500 for students with disabilities, does not violate the state constitution's requirement to maintain a public school system.

Why it matters

The court's decision clears the way for the tax credit program to take effect, providing families with more educational options beyond the public school system. However, critics argue the program diverts resources from public schools, raising concerns about the potential impact on the state's overall education system.

The details

In a ruling issued on February 5, the Idaho Supreme Court denied a petition challenging House Bill 93, a 2025 law that created the refundable tax credit. The lawsuit was brought by a coalition of education groups, advocacy organizations, and individuals who argued the tax credit violates the Idaho Constitution by indirectly funding a separate, nonpublic education system. The court disagreed, ruling that the constitution requires the legislature to establish and maintain a public school system but does not prohibit lawmakers from supporting additional educational options.

• The Idaho State Tax Commission began accepting applications for the credit in January 2026.
• The Idaho Supreme Court issued its ruling on February 5, 2026.

What’s next

The Idaho State Tax Commission will continue to accept and process applications for the parental choice tax credit program.