Bill Analyses and Ratings
Bill Information: S1281 – Idaho Parental Choice Tax Credit Cap Adjustment
Bill Summary
This bill amends Idaho Code Section 63-3029N to modify the annual cap on the Idaho Parental Choice Tax Credit program. The existing program provides refundable tax credits up to $5,000 per eligible student (or $7,500 for students with disabilities) for qualified educational expenses at nonpublic schools, including tuition, tutoring, curricula, and transportation costs.
The bill establishes a phased approach to the program’s annual spending limit: $48 million for tax year 2026, $47.5 million for tax year 2027, and $50 million for each year thereafter. When applications exceed these caps, credits are distributed first to returning families and those below 300% of the federal poverty level, then to other applicants on a first-come, first-served basis. The State Tax Commission maintains a waiting list for families who cannot receive credits due to the cap. The bill includes an emergency clause for immediate implementation upon passage and approval.
Overall Assessment
This bill received a total score of -1, reflecting a negative impact on education policy in Idaho. The temporary reduction in funding for the parental choice tax credit program represents a constraint on educational options for families seeking alternatives to public schools. The $2 million reduction in 2026 and $2.5 million reduction in 2027 will likely result in longer waiting lists and reduced access to the program during those years, particularly affecting families who do not qualify for priority status.
The bill does not significantly impact other policy areas evaluated in the metrics. While it involves tax policy and family educational choices, the changes are narrowly focused on adjusting the annual cap for a specific tax credit program. The negative education score reflects the temporary reduction in available funding for families utilizing nonpublic educational options, even though the program returns to its $50 million cap in 2028 and beyond.
Rating Breakdown
ARTICLE I. RESPONSIBILITY IN GOVERNMENT (0)
This bill adjusts the annual cap on a tax credit program but does not address broader issues of government accountability, transparency, or fiscal responsibility. The temporary reduction in funding is a budgetary adjustment rather than a structural reform to government operations.
ARTICLE II. CITIZEN INVOLVEMENT IN GOVERNMENT (0)
This bill does not address citizen participation in government processes, public engagement mechanisms, or transparency in decision-making. It is a technical adjustment to tax credit program funding levels.
ARTICLE III. EDUCATION (-1)
This bill temporarily reduces funding for the parental choice tax credit program by $2 million in 2026 and $2.5 million in 2027, which will limit access to educational alternatives for Idaho families. The reduction constrains educational choice options during these years, resulting in longer waiting lists and reduced availability of tax credits for families seeking nonpublic school options.
ARTICLE IV. AGRICULTURE (0)
This bill addresses tax credits for educational expenses and does not relate to agricultural policy, farming operations, or rural agricultural communities in Idaho.
ARTICLE V. WATER (0)
This bill concerns educational tax credits and has no connection to water rights, water quality, or water resource management in Idaho.
ARTICLE VI. NATURAL RESOURCES AND ENVIRONMENT (0)
This bill modifies tax credit caps for educational expenses and does not address natural resource management, environmental protection, or conservation policies.
ARTICLE VII. ENERGY (0)
This bill deals with educational tax credits and does not involve energy production, energy policy, or energy infrastructure in Idaho.
ARTICLE VIII. IDAHO NATIONAL LABORATORIES (0)
This bill adjusts funding caps for educational tax credits and has no relationship to the Idaho National Laboratory or its operations.
ARTICLE IX. PRIVATE PROPERTY RIGHTS (0)
This bill modifies tax credit program funding levels and does not address property rights, land use regulations, or eminent domain issues.
ARTICLE X. STATE AND FEDERAL LANDS (0)
This bill concerns educational tax credits and does not involve state or federal land management, public land access, or land transfer policies.
ARTICLE XI. WILDLIFE MANAGEMENT (0)
This bill addresses educational tax credit funding and has no connection to wildlife management, hunting, fishing, or habitat conservation.
ARTICLE XII. ECONOMY (0)
This bill makes temporary adjustments to a tax credit program but does not represent significant economic policy changes or address broader economic development, taxation reform, or business climate issues in Idaho.
ARTICLE XIII. HEALTH AND WELFARE (0)
This bill modifies educational tax credit caps and does not address health care policy, welfare programs, or public health initiatives.
ARTICLE XIV. AMERICAN FAMILY (0)
This bill adjusts funding levels for an educational tax credit program but does not address broader family policy issues such as parental rights, family structure, or family-related legislation beyond this specific tax credit mechanism.
ARTICLE XV. OLDER AMERICANS (0)
This bill concerns educational tax credits for K-12 students and does not address issues affecting senior citizens, retirement, or elderly care.
ARTICLE XVI. LAW AND ORDER WITH JUSTICE (0)
This bill modifies educational tax credit program caps and does not relate to criminal justice, law enforcement, or judicial system issues.
ARTICLE XVII. NATIONAL DEFENSE – SECURING THE BORDER (0)
This bill addresses educational tax credits and has no connection to national defense, border security, or immigration enforcement.
ARTICLE XVIII. ELECTION OF JUDGES AND IDAHO SUPREME COURT JUSTICES (0)
This bill concerns educational tax credit funding and does not address judicial selection, court operations, or the election of judges.
ARTICLE XIX. RELIGIOUS LIBERTY (0)
This bill adjusts funding caps for educational tax credits that can be used at religious schools, but does not directly address religious freedom protections, religious expression rights, or religious liberty issues.