Idaho Supreme Court Upholds Private Education Tax Credit

Ruling allows state's first private school choice program to move forward

Feb. 6, 2026 at 11:31am

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The Idaho Supreme Court has unanimously upheld the state's new Parental Choice Tax Credit, rejecting a challenge from a coalition of education groups. The five-member court ruled that the tax credit, which provides up to $5,000 in refundable credits for private school tuition and other education expenses, does not violate the state constitution's mandate to fund public schools.

Why it matters

The court's decision clears the way for the tax credit program to be implemented, marking Idaho's first foray into private school choice. While proponents argue the credit will expand educational opportunities, critics contend it diverts funding from the state's public school system.

The details

The Idaho Supreme Court ruled that the coalition of challengers, including the Idaho Education Association and Moscow School District, failed to show the tax credit violates the state constitution's requirement to fund public schools. The court concluded the credit does not create a separate, tuition-based system, but rather expands the Legislature's authority to support education beyond just public schools.

  • The Idaho Supreme Court heard oral arguments in the case on January 23, 2026.
  • The court issued its unanimous ruling upholding the tax credit on February 5, 2026.

The players

Idaho Supreme Court

The state's highest court, which issued the ruling upholding the Parental Choice Tax Credit.

Idaho Education Association

A coalition member that challenged the tax credit, arguing it violates the state constitution's mandate to fund public schools.

Moscow School District

A coalition member that joined the lawsuit against the tax credit.

G. Richard Bevan

Chief Justice of the Idaho Supreme Court, who wrote the majority opinion in the case.

Gregory Moeller

Idaho Supreme Court Justice who concurred with the majority opinion but wrote a separate addendum.

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What’s next

The application period for the nearly $50 million in tax credits opened on January 15, 2026. As of February 1, the Idaho State Tax Commission had received 5,056 applications covering 9,341 students.

The takeaway

The Idaho Supreme Court's ruling upholds the state's first private school choice program, allowing the Parental Choice Tax Credit to move forward despite concerns from education advocates about the potential impact on public school funding. The decision underscores the ongoing debate over the role of private education options within the state's public education system.