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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0225 Introduced 1/31/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
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| 35 ILCS 40/5 | | 35 ILCS 40/10 | |
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Amends the Invest in Kids Act. Provides that qualified contributions made on or after June 1, 2024 may be used only to provide scholarships to eligible students who attend a technical academy.
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| | A BILL FOR |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Invest in Kids Act is amended by changing |
5 | | Sections 5 and 10 as follows:
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6 | | (35 ILCS 40/5) |
7 | | (Section scheduled to be repealed on January 1, 2025)
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8 | | Sec. 5. Definitions. As used in this Act: |
9 | | "Authorized contribution" means the contribution amount |
10 | | that is listed on the contribution authorization certificate |
11 | | issued to the taxpayer.
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12 | | "Board" means the State Board of Education.
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13 | | "Contribution" means a donation made by the taxpayer |
14 | | during the taxable year for providing scholarships as provided |
15 | | in this Act. |
16 | | "Custodian" means, with respect to eligible students, an |
17 | | Illinois resident who is a parent or legal guardian of the |
18 | | eligible student or students.
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19 | | "Department" means the Department of Revenue. |
20 | | "Eligible student" means a child who:
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21 | | (1) is a member of a household whose federal adjusted |
22 | | gross income the year before he or she
initially receives |
23 | | a scholarship under this program, as determined by the |
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1 | | Department, does not exceed 300% of the federal poverty
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2 | | level and, once the child receives a scholarship, does not |
3 | | exceed 400% of the federal poverty
level;
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4 | | (2) is eligible to attend a public elementary school |
5 | | or high school in Illinois in the semester immediately |
6 | | preceding the semester for which he or she first receives |
7 | | a scholarship or is
starting school in Illinois for the |
8 | | first time when he or she first receives a scholarship; |
9 | | and
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10 | | (3) resides in Illinois while receiving a scholarship. |
11 | | "Family member" means a parent, child, or sibling, whether |
12 | | by whole blood, half blood, or adoption; spouse; or stepchild. |
13 | | "Focus district" means a school district which has a |
14 | | school that is either (i) a school that has one or more |
15 | | subgroups in which the average student performance is at or |
16 | | below the State average for the lowest 10% of student |
17 | | performance in that subgroup or (ii) a school with an average |
18 | | graduation rate of less than 60% and not identified for |
19 | | priority.
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20 | | "Jointly administered CTE program" means a program or set |
21 | | of programs within a non-public school located in Illinois, as |
22 | | determined by the State Board of Education pursuant to Section |
23 | | 7.5 of this Act. |
24 | | "Necessary costs and fees" includes the customary charge |
25 | | for instruction and use of facilities in general
and the |
26 | | additional fixed fees charged for specified purposes that are |
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1 | | required generally of non-scholarship recipients for each |
2 | | academic period for which the scholarship applicant actually |
3 | | enrolls, including costs associated with student assessments, |
4 | | but does not
include fees payable only once and other |
5 | | contingent deposits that are refundable in whole or in part. |
6 | | The Board may prescribe, by rules consistent with this Act, |
7 | | detailed provisions concerning the computation of necessary |
8 | | costs and fees.
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9 | | "Scholarship granting organization" means an entity that:
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10 | | (1) is exempt from taxation under Section 501(c)(3) of |
11 | | the Internal Revenue Code;
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12 | | (2) uses at least 95% of the qualified contributions |
13 | | received during a taxable year for scholarships;
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14 | | (3) provides scholarships to students according to the |
15 | | guidelines of this Act;
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16 | | (4) deposits and holds qualified contributions and any |
17 | | income derived from qualified contributions
in an account |
18 | | that is separate from the organization's operating fund or |
19 | | other funds until such qualified contributions or income |
20 | | are withdrawn for use; and
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21 | | (5) is approved to issue certificates of receipt.
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22 | | "Technical academy" means a non-public school located in |
23 | | Illinois that: (1) registers with the Board pursuant to |
24 | | Section 2-3.25 of the School Code; and (2) operates or will |
25 | | operate a jointly administered CTE program as the primary |
26 | | focus of the school. To maintain its status as a technical |
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1 | | academy, the non-public school must obtain recognition from |
2 | | the Board pursuant to Section 2-3.25o of the School Code |
3 | | within 2 calendar years of its registration with the Board. |
4 | | "Qualified contribution" means the authorized contribution |
5 | | made by a taxpayer to a scholarship granting organization for |
6 | | which the taxpayer has received a certificate of receipt from |
7 | | such organization.
Qualified contributions made on or after |
8 | | June 1, 2024 may be used only to provide scholarships to |
9 | | eligible students who attend a technical academy. |
10 | | "Qualified school" , for contributions made prior to June |
11 | | 1, 2024, means a non-public school located in Illinois and |
12 | | recognized by the Board pursuant to Section 2-3.25o of the |
13 | | School Code.
On and after June 1, 2024, "qualified school" |
14 | | means a technical academy located in Illinois and recognized |
15 | | by the Board pursuant to Section 2-3.25o of the School Code. |
16 | | "Scholarship" means an educational scholarship awarded to |
17 | | an eligible student to attend a qualified school
of their |
18 | | custodians' choice in an amount not exceeding the necessary |
19 | | costs and fees to attend that school.
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20 | | "Taxpayer" means any individual, corporation, partnership, |
21 | | trust, or other entity subject to the Illinois income tax. For |
22 | | the purposes of this Act, 2 individuals filing a joint return |
23 | | shall be considered one taxpayer.
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24 | | (Source: P.A. 102-16, eff. 6-17-21.)
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25 | | (35 ILCS 40/10) |
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1 | | (Section scheduled to be repealed on January 1, 2025)
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2 | | Sec. 10. Credit awards. |
3 | | (a) The Department shall award credits against the tax |
4 | | imposed under subsections (a) and (b) of Section 201 of the |
5 | | Illinois Income Tax Act to taxpayers who make qualified |
6 | | contributions. For contributions made under this Act, the |
7 | | credit shall be equal to 75% of the total amount of
qualified |
8 | | contributions made by the taxpayer during a taxable year, not |
9 | | to exceed a credit of $1,000,000 per taxpayer.
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10 | | (b) The aggregate amount of all credits the Department may |
11 | | award under this Act in any calendar year may not exceed |
12 | | $75,000,000. |
13 | | (c) Contributions made by corporations (including |
14 | | Subchapter S corporations), partnerships, and trusts under |
15 | | this Act may not be directed to a particular subset of schools, |
16 | | a particular school, a particular group of students, or a |
17 | | particular student.
Contributions made by individuals under |
18 | | this Act may be directed to a particular subset of schools or a |
19 | | particular school but may not be directed to a particular |
20 | | group of students or a particular student. |
21 | | (d) No credit shall be taken under this Act for any |
22 | | qualified contribution for which the taxpayer claims a federal |
23 | | income tax deduction. |
24 | | (e) Credits shall be awarded in a manner, as determined by |
25 | | the Department, that is geographically proportionate to |
26 | | enrollment in recognized non-public schools in Illinois. If |
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1 | | the cap on the aggregate credits that may be awarded by the |
2 | | Department is not reached by June 1 of a given year, the |
3 | | Department shall award remaining credits on a first-come, |
4 | | first-served basis, without regard to the limitation of this |
5 | | subsection.
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6 | | (f) Prior to June 1, 2024, credits Credits awarded for |
7 | | donations made to a technical academy shall be awarded without |
8 | | regard to subsection (e), but shall not exceed 15% of the |
9 | | annual statewide program cap. For the purposes of this |
10 | | subsection, "technical academy" means a technical academy that |
11 | | is registered with the Board within 30 days after the |
12 | | effective date of this amendatory Act of the 102nd General |
13 | | Assembly. |
14 | | (Source: P.A. 102-16, eff. 6-17-21.)
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