ID H0590

Repeals and replaces the existing Idaho Parental Choice Tax Credit with a new refundable tax credit of up to $5,000 per eligible student (or $7,500 for students with disabilities) beginning in tax year 2028, available to parents of K-12 students attending nonpublic schools, microschools, or learning pods for qualified expenses including tuition, tutoring, textbooks, assessments, and transportation

Caps the total annual tax credits at $50,000,000 across all taxpayers, with priority given in 2029 to families with modified adjusted gross income at or below 300% of the federal poverty level, and in subsequent years to returning recipients followed by lower-income families, with remaining credits distributed on a first-come, first-served basis

Allows low-income parents (at or below 300% of the federal poverty level) to elect a one-time advance payment of the credit per eligible student, paid within 60 days of award notification but no later than August 30, funded through the Idaho Parental Choice Tax Credit Advance Payment Fund established in the state treasury

Requires the State Tax Commission to provide annual reports beginning in 2030 on credit usage, applicant demographics, and spending categories, and requires the Legislative Services Office to administer an annual parent satisfaction and engagement survey evaluating nonpublic school performance, completion of which is mandatory for parents to receive the credit in subsequent years

Prohibits government agencies from exercising control or supervision over nonpublic schools as a result of the credit program, and provides staggered effective dates with repeal and fund transfer provisions taking effect January 1, 2027, and the new credit and fund provisions taking effect January 1, 2028