Parental Choice Tax Credit lawsuit heads to the Idaho Supreme Court

BOISE, Idaho (KIFI) – A lawsuit challenging the constitutionality of Idaho’s new Parental Choice Tax Credits goes before the Idaho Supreme Court on Friday.

The credits provide reimbursement for up to $5,000 per child each year for educational expenses or $7,500 per child with special needs.

The new $50 million program passed the Legislature in February 2025, and was signed by Gov. Brad Little in the face of significant resistance.

In the case, the Idaho Education Association, Moscow School District #281 and other groups cite Article IX of the Idaho Constitution. They argue that the tax credits are unconstitutional because “the Legislature has acted outside the bounds of its authority by subsidizing private schools within the state of Idaho.”

“The state constitution, it talks about for the betterment of the electorate that we have to have free, uniform, thorough, common, public schools, right?” said Rep. Stephanie Mickelsen, R-Idaho Falls, who is a plaintiff in the case. “...This really is what this cases hinges upon is the intent of the framers of our state Constitution. Was it their desire to not send public tax dollars to private schools?”

But the Mountain States Policy Center, which advocated for the tax credits, says state programs, such as Idaho Launch, already send state funds to private and religious institutions in the state.

“I think one of the most dangerous parts of this case is the arguments that the petitioners are using vis à vis the state's tax system and what the tax system allows for and what it doesn't allow for,” said Chris Cargill, Mountain States Policy Center President & CEO. “They're basically saying that because parents have the ability to use these dollars in ways that they don't like that somehow that means that the program itself is unconstitutional.”

The Mountain States Policy Center reports that 64 percent of Idahoans support the tax credits, according to multiple of its polls.

However, during the last session, the Governor’s office reported receiving nearly 37,500 calls and email messages about the measure, with 86 percent of those expressing disapproval.

A decision from Idaho’s highest court is expected by the end of the Legislative session.