Bill Text: IL SB3618 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Invest in Kids Act. Provides that students who are eligible to attend a qualifying pre-kindergarten school are also considered eligible students under the Act. Provides that the credit shall be equal to 100% (currently, 75%) of the total amount of qualified contributions made by the taxpayer during a taxable year. Removes a limitation that contributions may not be directed to a particular subset of schools, a particular school, a particular group of students, or a particular student. Provides that applications for scholarships for eligible students who received a scholarship from a scholarship granting organization during the previous school year shall be considered for re-application for the current school year and shall be considered received on the first day that the scholarship granting organization begins granting scholarships. Provides that the Act applies on a permanent basis. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2022-10-21 - Chief Sponsor Changed to Sen. Don Harmon [SB3618 Detail]

Download: Illinois-2021-SB3618-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3618 Introduced 1/19/2022, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED:
35 ILCS 40/5
35 ILCS 40/10
35 ILCS 40/40
35 ILCS 40/65
Amends the Invest in Kids Act. Provides that students who are eligible to attend a qualifying pre-kindergarten school are also considered eligible students under the Act. Provides that the credit shall be equal to 100% (currently, 75%) of the total amount of qualified contributions made by the taxpayer during a taxable year. Removes a limitation that contributions may not be directed to a particular subset of schools, a particular school, a particular group of students, or a particular student. Provides that applications for scholarships for eligible students who received a scholarship from a scholarship granting organization during the previous school year shall be considered for re-application for the current school year and shall be considered received on the first day that the scholarship granting organization begins granting scholarships. Provides that the Act applies on a permanent basis. Effective immediately.
LRB102 24247 HLH 33478 b
A BILL FOR
SB3618 LRB102 24247 HLH 33478 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Invest in Kids Act is amended by changing
Sections 5, 10, 40, and 65 as follows:
(35 ILCS 40/5)
(Section scheduled to be repealed on January 1, 2025)
Sec. 5. Definitions. As used in this Act:
"Authorized contribution" means the contribution amount
that is listed on the contribution authorization certificate
issued to the taxpayer.
"Board" means the State Board of Education.
"Contribution" means a donation made by the taxpayer
during the taxable year for providing scholarships as provided
in this Act.
"Custodian" means, with respect to eligible students, an
Illinois resident who is a parent or legal guardian of the
eligible student or students.
"Department" means the Department of Revenue.
"Eligible student" means a child who:
(1) is a member of a household whose federal adjusted
gross income the year before he or she initially receives
a scholarship under this program, as determined by the

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Department, does not exceed 300% of the federal poverty
level and, once the child receives a scholarship, does not
exceed 400% of the federal poverty level;
(2) is eligible to attend a qualifying
pre-kindergarten school, a public elementary school, or a
high school in Illinois in the semester immediately
preceding the semester for which he or she first receives
a scholarship or is starting school in Illinois for the
first time when he or she first receives a scholarship;
and
(3) resides in Illinois while receiving a scholarship.
"Family member" means a parent, child, or sibling, whether
by whole blood, half blood, or adoption; spouse; or stepchild.
"Focus district" means a school district which has a
school that is either (i) a school that has one or more
subgroups in which the average student performance is at or
below the State average for the lowest 10% of student
performance in that subgroup or (ii) a school with an average
graduation rate of less than 60% and not identified for
priority.
"Jointly administered CTE program" means a program or set
of programs within a non-public school located in Illinois, as
determined by the State Board of Education pursuant to Section
7.5 of this Act.
"Necessary costs and fees" includes the customary charge
for instruction and use of facilities in general and the

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additional fixed fees charged for specified purposes that are
required generally of non-scholarship recipients for each
academic period for which the scholarship applicant actually
enrolls, including costs associated with student assessments,
but does not include fees payable only once and other
contingent deposits that are refundable in whole or in part.
The Board may prescribe, by rules consistent with this Act,
detailed provisions concerning the computation of necessary
costs and fees.
"Scholarship granting organization" means an entity that:
(1) is exempt from taxation under Section 501(c)(3) of
the Internal Revenue Code;
(2) uses at least 95% of the qualified contributions
received during a taxable year for scholarships;
(3) provides scholarships to students according to the
guidelines of this Act;
(4) deposits and holds qualified contributions and any
income derived from qualified contributions in an account
that is separate from the organization's operating fund or
other funds until such qualified contributions or income
are withdrawn for use; and
(5) is approved to issue certificates of receipt.
"Technical academy" means a non-public school located in
Illinois that: (1) registers with the Board pursuant to
Section 2-3.25 of the School Code; and (2) operates or will
operate a jointly administered CTE program as the primary

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focus of the school. To maintain its status as a technical
academy, the non-public school must obtain recognition from
the Board pursuant to Section 2-3.25o of the School Code
within 2 calendar years of its registration with the Board.
"Qualified contribution" means the authorized contribution
made by a taxpayer to a scholarship granting organization for
which the taxpayer has received a certificate of receipt from
such organization.
"Qualified school" means a non-public school located in
Illinois and recognized by the Board pursuant to Section
2-3.25o of the School Code, or a state-recognized non-public
pre-kindergarten school in Illinois.
"Scholarship" means an educational scholarship awarded to
an eligible student to attend a qualified school of their
custodians' choice in an amount not exceeding the necessary
costs and fees to attend that school.
"Taxpayer" means any individual, corporation, partnership,
trust, or other entity subject to the Illinois income tax. For
the purposes of this Act, 2 individuals filing a joint return
shall be considered one taxpayer.
(Source: P.A. 102-16, eff. 6-17-21.)
(35 ILCS 40/10)
(Section scheduled to be repealed on January 1, 2025)
Sec. 10. Credit awards.
(a) The Department shall award credits against the tax

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imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act to taxpayers who make qualified
contributions. For contributions made under this Act, the
credit shall be equal to 100% 75% of the total amount of
qualified contributions made by the taxpayer during a taxable
year, not to exceed a credit of $1,000,000 per taxpayer.
(b) The aggregate amount of all credits the Department may
award under this Act in any calendar year may not exceed
$75,000,000.
(c) Contributions made by corporations (including
Subchapter S corporations), partnerships, and trusts under
this Act may not be directed to a particular subset of schools,
a particular school, a particular group of students, or a
particular student. Contributions made by individuals or
corporations under this Act may be directed to a particular
subset of schools or a particular school but may not be
directed to a particular group of students or a particular
student.
(d) No credit shall be taken under this Act for any
qualified contribution for which the taxpayer claims a federal
income tax deduction.
(e) Credits shall be awarded in a manner, as determined by
the Department, that is geographically proportionate to
enrollment in recognized non-public schools in Illinois. If
the cap on the aggregate credits that may be awarded by the
Department is not reached by June 1 of a given year, the

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Department shall award remaining credits on a first-come,
first-served basis, without regard to the limitation of this
subsection.
(f) Credits awarded for donations made to a technical
academy shall be awarded without regard to subsection (e), but
shall not exceed 15% of the annual statewide program cap. For
the purposes of this subsection, "technical academy" means a
technical academy that is registered with the Board within 30
days after the effective date of this amendatory Act of the
102nd General Assembly.
(Source: P.A. 102-16, eff. 6-17-21.)
(35 ILCS 40/40)
(Section scheduled to be repealed on January 1, 2025)
Sec. 40. Scholarship granting organization
responsibilities.
(a) Before granting a scholarship for an academic year,
all scholarship granting organizations shall assess and
document each student's eligibility for the academic year.
(b) A scholarship granting organization shall grant
scholarships only to eligible students.
(c) A scholarship granting organization shall allow an
eligible student to attend any qualified school of the
student's choosing, subject to the availability of funds.
(d) In granting scholarships, a scholarship granting
organization shall give priority to the following priority

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groups:
(1) eligible students who received a scholarship from
a scholarship granting organization during the previous
school year;
(2) eligible students who are members of a household
whose previous year's total annual income does not exceed
185% of the federal poverty level;
(3) eligible students who reside within a focus
district; and
(4) eligible students who are siblings of students
currently receiving a scholarship.
(d-5) A scholarship granting organization shall begin
granting scholarships no later than February 1 preceding the
school year for which the scholarship is sought. Eligible
students who received a scholarship from a scholarship
granting organization during the previous school year shall
take priority in receiving scholarships. The remaining
priority groups identified in subsection (d) of this Section
shall be eligible to receive scholarships on a first-come,
first-served basis until the April 1 immediately preceding the
school year for which the scholarship is sought. Applications
for scholarships for eligible students meeting the
qualifications of one or more priority groups that are
received before April 1 must be either approved or denied
within 10 business days after receipt. Unless the student's
custodian withdraws the student's application or the student

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no longer meets the qualifications of this Act, the
applications for scholarships for eligible students who
received a scholarship from a scholarship granting
organization during the previous school year shall be
considered for re-application for the current school year and
shall be considered received on the first day that the
scholarship granting organization begins granting
scholarships. If the student no longer meets the
qualifications of this Act or changes in circumstance cause
the application to otherwise become defective under this Act,
the scholarship granting organization shall notify the
student's custodian of the defect no later than January 1.
Beginning April 1, all eligible students shall be eligible to
receive scholarships without regard to the priority groups
identified in subsection (d) of this Section.
(e) Except as provided in subsection (e-5) of this
Section, scholarships shall not exceed the lesser of (i) the
statewide average operational expense per student among public
schools or (ii) the necessary costs and fees for attendance at
the qualified school. Scholarships shall be prorated as
follows:
(1) for eligible students whose household income is
less than 185% of the federal poverty level, the
scholarship shall be 100% of the amount determined
pursuant to this subsection (e) and subsection (e-5) of
this Section;

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(2) for eligible students whose household income is
185% or more of the federal poverty level but less than
250% of the federal poverty level, the average of
scholarships shall be 75% of the amount determined
pursuant to this subsection (e) and subsection (e-5) of
this Section; and
(3) for eligible students whose household income is
250% or more of the federal poverty level, the average of
scholarships shall be 50% of the amount determined
pursuant to this subsection (e) and subsection (e-5) of
this Section.
(e-5) The statewide average operational expense per
student among public schools shall be multiplied by the
following factors:
(1) for students determined eligible to receive
services under the federal Individuals with Disabilities
Education Act, 2;
(2) for students who are English learners, as defined
in subsection (d) of Section 14C-2 of the School Code,
1.2; and
(3) for students who are gifted and talented children,
as defined in Section 14A-20 of the School Code, 1.1.
(f) A scholarship granting organization shall distribute
scholarship payments to the participating school where the
student is enrolled.
(g) For the 2018-2019 school year through the 2021-2022

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school year, each scholarship granting organization shall
expend no less than 75% of the qualified contributions
received during the calendar year in which the qualified
contributions were received. No more than 25% of the qualified
contributions may be carried forward to the following calendar
year.
(h) For the 2022-2023 school year, each scholarship
granting organization shall expend all qualified contributions
received during the calendar year in which the qualified
contributions were received. No qualified contributions may be
carried forward to the following calendar year.
(i) A scholarship granting organization shall allow an
eligible student to transfer a scholarship during a school
year to any other participating school of the custodian's
choice. Such scholarships shall be prorated.
(j) With the prior approval of the Department, a
scholarship granting organization may transfer funds to
another scholarship granting organization if additional funds
are required to meet scholarship demands at the receiving
scholarship granting organization. All transferred funds must
be deposited by the receiving scholarship granting
organization into its scholarship accounts. All transferred
amounts received by any scholarship granting organization must
be separately disclosed to the Department.
(k) If the approval of a scholarship granting organization
is revoked as provided in Section 20 of this Act or the

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scholarship granting organization is dissolved, all remaining
qualified contributions of the scholarship granting
organization shall be transferred to another scholarship
granting organization. All transferred funds must be deposited
by the receiving scholarship granting organization into its
scholarship accounts.
(l) Scholarship granting organizations shall make
reasonable efforts to advertise the availability of
scholarships to eligible students.
(Source: P.A. 100-465, eff. 8-31-17.)
(35 ILCS 40/65)
(Section scheduled to be repealed on January 1, 2025)
Sec. 65. Credit period; repeal.
(a) A taxpayer may take a credit under this Act for tax
years beginning on or after January 1, 2018 and ending before
January 1, 2024. A taxpayer may not take a credit pursuant to
this Act for tax years beginning on or after January 1, 2024.
(b) This Act is exempt from the provisions of Section 250
of the Illinois Income Tax Act repealed on January 1, 2025.
(Source: P.A. 102-16, eff. 6-17-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.