This bill establishes the Idaho Parental Choice Tax Credit, allowing parents with a taxable income not exceeding three hundred percent of the federal poverty level to request an advance payment of the tax credit to cover qualified educational expenses for their children. The new Section 63-3029N outlines the definitions of eligible students, qualified expenses, and the administration of the tax credit, which can be up to $5,000 for each eligible student. Additionally, the bill allows for an increased credit of $7,500 for students with disabilities. The Idaho State Tax Commission will oversee the application process, including the issuance of credits and the management of a waiting list if claims exceed the annual limit of $50 million.

Furthermore, the bill introduces a new Section 67-1230, creating the Idaho Parental Choice Tax Credit Advance Payment Fund, which will be used to administer the advance payments. The fund will consist of legislative appropriations, donations, and interest earned, and will be continuously appropriated for the program. The bill also includes provisions for severability and declares an emergency, making it effective immediately and retroactively to January 1, 2025.