BOISE, ID — The Idaho Supreme Court has upheld the state’s parental choice tax credit, rejecting a legal challenge that sought to block the program’s implementation.

In a ruling issued Feb. 5, the court denied a petition for a writ of prohibition challenging House Bill 93, a 2025 law that created a refundable tax credit for families who pay certain private education expenses. The program allows eligible parents to claim up to $5,000 per student, or up to $7,500 for students with qualifying disabilities.

The lawsuit was brought by a coalition of education groups, advocacy organizations, and individuals who argued the tax credit violates the Idaho Constitution by indirectly funding a separate, nonpublic education system and diverting resources from public schools.

The court disagreed, ruling that the Idaho Constitution requires the Legislature to establish and maintain a public school system but does not prohibit lawmakers from supporting additional educational options. The justices said the constitutional provision sets a minimum obligation, not a restriction on legislative authority.

The court also rejected claims that the tax credit violates the state’s public purpose doctrine, finding that education is a recognized public purpose even if private entities incidentally benefit.

The justices noted the credit applies to a broad range of educational expenses and is only available for students not enrolled in public schools during the semester the credit is claimed.

Although the court found the petitioners lacked traditional standing, it chose to hear the case due to the constitutional significance of the issue and the timing of the program’s rollout. The Idaho State Tax Commission began accepting applications for the credit in January.

The court awarded attorney fees to the Idaho State Tax Commission and ruled the tax credit may proceed as enacted.