Private education tax credit reaches annual cap, applications close

July 17, 2026 - 18:27

Idaho's private education tax credit program has reached its annual funding cap, prompting the state to close applications for the current year. The program, which allows taxpayers to claim credits for donations to private school scholarship organizations, is limited to $50 million per year, including administrative costs.

The Idaho State Tax Commission confirmed that the cap has been met, though officials have released minimal details about who is receiving the taxpayer funds. The lack of transparency has drawn criticism from some lawmakers and education advocates who question how the money is being distributed. The commission has not disclosed the number of approved applications, the average credit amount, or which scholarship organizations are benefiting.

This marks the first year the program has reached its limit since it was expanded in 2023. Supporters argue the credits give families more educational choices, while opponents say they divert public money from public schools. With applications now closed, interested donors and families will have to wait until the next funding cycle, which begins in January. The program's rapid uptake suggests strong demand, but also raises questions about whether the cap should be raised in future legislative sessions.