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 set at a maximum of $5,000 per eligible student for tax year 2025 and beyond, with an increased limit of $7,500 for students with disabilities. The bill outlines the definitions of eligible students, qualified expenses, and the application process, including the requirement for parents to submit a satisfaction and engagement survey regarding the nonpublic school their child attends.

Additionally, the bill creates the Idaho Parental Choice Tax Credit Advance Payment Fund, which will be administered by the state tax commission and funded through legislative appropriations, donations, and interest earned. The provisions of the act are declared severable, ensuring that if any part is found invalid, the remaining sections will still be effective. The bill is set to take effect immediately upon passage and approval, with retroactive application to January 1, 2025.