Adds to existing law to establish the Idaho parental choice tax credit and Idaho Parental Choice Tax Credit Advance Payment Fund.

The Idaho Parental Choice Tax Credit legislation provides for a refundable tax credit up to $5,000 for a parent, guardian or foster parent who incurs qualified education expenses for an eligible student. “Qualified expenses” include kindergarten through twelfth grade tuition and fees related to attending a nonpublic school, tutoring, taking assessments used to determine college admission, costs for textbooks, curriculum, and transportation costs for the purpose of receiving academic instruction. The refundable tax credit is increased up to $7,500 for special needs students that require ancillary personnel to assist in academic instruction. All families may apply for the refundable tax credit during the application timeframe, but families whose income is less than 300% of the federal poverty level receive the highest priority and can also elect to have a one-time advance tax credit payment in their first year of participation in the program. The Idaho State Tax Commission will administer the program and has the ability to audit records, receipts and documents similar to all tax filings to ensure accountability. The Idaho State Tax Commission may refer suspected cases of fraud to the Attorney General for investigation and prosecution. The Tax Commission will be required to report annually to the Idaho Legislature on the number of tax credits applied for and the average tax credit issued, the types and amounts of qualified education expenses, the income of households applying for the credit, and the geographic area of the parents applying for the tax credit. Parents participating in the tax credit program will be required to complete a satisfaction and engagement survey to evaluate the performance of the nonpublic school.