This bill establishes the Idaho Parental Choice Tax Credit, allowing parents with a taxable income not exceeding 300% of the federal poverty level to request an advance payment of the tax credit to cover qualified educational expenses for their children. The credit is designed for eligible students aged five to eighteen, or up to twenty-one for those with disabilities, and can cover expenses such as tuition, tutoring, and transportation. The refundable tax credit can be up to $5,000 per eligible student, with an increased limit of $7,500 for students with disabilities. The bill also outlines the administration of the credit, including application procedures, eligibility requirements, and penalties for false claims.

Additionally, the bill creates the Idaho Parental Choice Tax Credit Advance Payment Fund, which will be used to manage the funds for advance payments awarded under the program. The fund will consist of legislative appropriations, donations, and interest earned, and will be continuously appropriated for the intended purpose. The legislation includes provisions for severability, ensuring that if any part of the act is deemed invalid, the remaining sections will still be enforceable. The act is declared to be in effect immediately upon passage and retroactively applied from January 1, 2025.