Idaho Homeschool Funding & Tax Credit Guide (2026)

Idaho joined the school choice movement in 2025 with a distinctive approach: instead of an education savings account, the state offers a refundable tax credit. Under House Bill 93, homeschool families can receive up to $5,000 per child—or $7,500 for children with disabilities—when they file their Idaho state taxes^[1].

This "spend first, claim later" model works differently than the ClassWallet-style ESA programs in states like Arizona or Florida. Understanding the mechanics matters, because you'll need to pay for expenses upfront and wait for reimbursement at tax time.

What Funding Is Available for Idaho Homeschoolers?

Idaho offers the Parental Choice Tax Credit, created under House Bill 93 and signed into law in February 2025. The program provides a refundable tax credit for qualified education expenses—meaning you receive money back even if you owe nothing in state income taxes.

The program has a total annual cap of $50 million statewide. If applications exceed available funding, the credit may be prorated. However, as a new program, demand patterns are still being established.

Key distinction: this is a tax credit, not an education savings account. You don't receive funds in advance. Instead, you pay for educational expenses throughout the year, document them carefully, and claim the credit when you file your Idaho state taxes.

Idaho Tax Credit vs. Traditional ESA

Eligibility Requirements

How Much Can You Receive?

The Idaho Parental Choice Tax Credit provides:

- $5,000 per student for standard K-12 students - $7,500 per student for children with documented disabilities

The credit is per child, so a family with three homeschooled children could claim up to $15,000 (or $22,500 if all have disabilities).

Refundable vs. Non-Refundable: This is a *refundable* credit. Even if you owe zero Idaho income tax, you receive the full credit amount as a refund. This makes it effectively equivalent to receiving cash from the state.

Program Cap: The statewide cap is $50 million annually. If total claims exceed this amount, credits may be prorated. Apply early in the application window to reduce proration risk.

Qualified Educational Expenses

• Curriculum & textbooks — Print, digital, online courses and subscriptions
• Tutoring services — Academic tutoring from qualified providers
• Educational testing — Standardized tests, achievement tests, college entrance exams
• Educational technology — Computers, tablets, and software for educational purposes
• Tuition — Private school or microschool tuition
• Educational supplies — Materials directly related to curriculum

Expenses That Do NOT Qualify

Not all education-related expenses count toward the Idaho tax credit:

- Athletics and sports — Equipment, league fees, uniforms - Transportation — Gas, vehicle expenses, field trip transportation - General supplies — Items not specifically tied to curriculum - Parent compensation — You cannot pay yourself to teach - Food and meals — Even for educational activities - Vacations — Including to educational destinations

Keep documentation clear about the educational purpose of each expense. When in doubt, keep the receipt anyway—you can decide later whether to claim it.

How to Claim the Idaho Tax Credit

Key Dates for 2026 Tax Year

The Application Window: Critical Detail

Unlike ongoing ESA programs where you can apply anytime, Idaho's tax credit has a specific registration window: January 15 through March 15 each year^[1].

You must register during this window to claim the credit for that tax year. If you miss the window, you cannot claim the credit—even if you have qualifying expenses. Mark your calendar.

The registration isn't complicated—it's essentially declaring your intent to claim the credit and providing basic information. But the deadline is firm.

Why the Window? The registration period helps Idaho estimate total credit claims against the $50 million program cap. If projected claims exceed available funding, the state can determine proration before tax filing season.

Cash Flow Considerations

The tax credit model creates a different cash flow situation than traditional ESA programs:

With an ESA: The state deposits funds quarterly. You spend the state's money on approved expenses.

With Idaho's Tax Credit: You spend your own money throughout the year. The state reimburses you when you file taxes—potentially 12-18 months after your first purchases.

Practical Implications: - You need cash on hand for educational expenses - Large purchases require your own capital upfront - The "refund" might arrive in spring of the following year - Budget for expenses as if no assistance is coming, then treat the credit as a bonus

For families comfortable with this model, the credit is genuinely valuable. But if cash flow is tight, the delayed reimbursement timeline matters.

Special Needs Enhanced Credit

Students with documented disabilities qualify for the enhanced $7,500 credit instead of the standard $5,000^[1].

Who Qualifies: Children ages 5-21 with documented disabilities, including those with: - Individualized Education Programs (IEPs) - Section 504 plans - Medical documentation of qualifying conditions

Documentation Requirements: You'll need to provide documentation of the disability when registering and claiming the credit. Acceptable documentation includes: - IEP from previous public school enrollment - Medical diagnosis from qualified professional - Evaluation from licensed educational psychologist

Important: The disability must be documented, not just suspected. If your child has special needs but lacks formal documentation, consider pursuing an evaluation before the registration window.

Idaho Tax Credit Timeline

Important Considerations

Before planning around Idaho's tax credit, consider these factors:

Program Cap Uncertainty: The $50 million cap could become binding if participation is high. Early registrants may receive full credits while later filers are prorated. Register as early as possible in the January-March window.

New Program: House Bill 93 passed in February 2025, making this a very new program. Implementation details, accepted expenses, and procedures may evolve. Stay informed about any guidance updates from the Tax Commission.

One-Year Residency: You must be an Idaho resident for at least one year before claiming the credit. Recent arrivals may need to wait.

Audit Risk: Tax credits require documentation. Keep receipts for at least three years in case of audit. Disorganized records could result in credit denial or repayment requirements.

The tax credit model is different, but $5,000-$7,500 per child is meaningful support for homeschool expenses. Just understand the timing and documentation requirements before counting on the funds.

The Bottom Line

Idaho's Parental Choice Tax Credit offers homeschool families up to $5,000 per child ($7,500 for special needs) through a refundable tax credit model. The universal eligibility—no income limits—makes this accessible to all Idaho homeschoolers.

The key difference from ESA states: you pay for expenses first, then get reimbursed at tax time. This requires planning for cash flow and diligent receipt-keeping throughout the year. Don't miss the January 15 - March 15 registration window.

If you're already tracking homeschool expenses and comfortable with delayed reimbursement, Idaho's tax credit provides substantial support for curriculum, tutoring, testing, and educational technology.