Bill Text: IL HB1342 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Reenacts the Invest in Kids Act and makes the Act permanent. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-28 - Referred to Rules Committee [HB1342 Detail]

Download: Illinois-2025-HB1342-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1342 Introduced , by Rep. Paul Jacobs SYNOPSIS AS INTRODUCED:
35 ILCS 40/Act title
35 ILCS 40/1
35 ILCS 40/5
35 ILCS 40/7.5
35 ILCS 40/10
35 ILCS 40/15
35 ILCS 40/20
35 ILCS 40/25
35 ILCS 40/30
35 ILCS 40/35
35 ILCS 40/40
35 ILCS 40/45
35 ILCS 40/50
35 ILCS 40/55
35 ILCS 40/60
35 ILCS 40/65
35 ILCS 40/70 new
35 ILCS 5/224
Reenacts the Invest in Kids Act and makes the Act permanent. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
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A BILL FOR
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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 reenacted and amended
by changing Sections 40 and 65 and by adding Section 70 as
follows:
(35 ILCS 40/Act title)
An Act concerning education.
(35 ILCS 40/1)
(Section scheduled to be repealed on January 1, 2025)
Sec. 1. Short title. This Act may be cited as the Invest in
Kids Act.
(Source: P.A. 100-465, eff. 8-31-17.)
(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(Section scheduled to be repealed on January 1, 2025)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

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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
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 public elementary school
or 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

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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
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

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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
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.
"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

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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 40/7.5)
(Section scheduled to be repealed on January 1, 2025)
Sec. 7.5. Determination of jointly-administered CTE
programs.
(a) Upon its own motion, or upon petition from a qualified
school or technical academy, the State Board of Education
shall determine whether a program or set of programs offered
or proposed by a qualified school or technical academy
provides coursework and training in career and technical
education pathways aligned to industry-recognized
certifications and credentials. The State Board of Education
shall make that determination based upon whether the
industry-recognized certifications or credentials that are the
focus of a qualified school or technical academy's coursework
and training program or set of programs (i) are associated
with an occupation determined to fall under the LEADING or
EMERGING priority sectors as determined through Illinois'
Workforce Innovation and Opportunity Act Unified State Plan
and (ii) provide wages that are at least 70% of the average
annual wage in the State, as determined by the United States
Bureau of Labor Statistics.
(b) The State Board of Education shall publish a list of

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approved jointly administered CTE programs on its website and
otherwise make that list available to the public. A qualified
school or technical academy may petition the State Board of
Education to obtain a determination that a proposed program or
set of programs that it seeks to offer qualifies as a jointly
administered CTE program under subsection (a) of this Section.
A petitioner shall file one original petition in the form
provided by the State Board of Education and in the manner
specified by the State Board of Education. The petitioner may
withdraw his or her petition by submitting a written statement
to the State Board of Education indicating withdrawal. The
State Board of Education shall approve or deny a petition
within 180 days of its submission and, upon approval, shall
proceed to add the program or set of programs to the list of
approved jointly administered CTE programs. The approval or
denial of any petition is a final decision of the Board,
subject to judicial review under the Administrative Review
Law. Jurisdiction and venue are vested in the circuit court.
(c) The State Board of Education shall evaluate the
approved jointly administered CTE programs under this Section
once every 5 years. At this time, the State Board of Education
shall determine whether these programs continue to meet the
requirements set forth in subsection (a) of this Section.
(Source: P.A. 102-16, eff. 6-17-21.)
(35 ILCS 40/10)

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(Section scheduled to be repealed on January 1, 2025)
Sec. 10. Credit awards.
(a) The Department shall award credits against the tax
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 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 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

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the cap on the aggregate credits that may be awarded by the
Department is not reached by June 1 of a given year, the
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 40/15)
(Section scheduled to be repealed on January 1, 2025)
Sec. 15. Approval to issue certificates of receipt.
(a) A scholarship granting organization shall submit an
application for approval to issue certificates of receipt in
the form and manner prescribed by the Department, provided
that each application shall include:
(1) documentary evidence that the scholarship granting
organization has been granted an exemption from taxation
under Section 501(c)(3) of the Internal Revenue Code;
(2) certification that all qualified contributions and
any income derived from qualified contributions are

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deposited and held in an account that is separate from the
scholarship granting organization's operating or other
funds until such qualified contributions or income are
withdrawn for use;
(3) certification that the scholarship granting
organization will use at least 95% of its annual revenue
from qualified contributions for scholarships;
(4) certification that the scholarship granting
organization will provide scholarships to eligible
students;
(5) a list of the names and addresses of all members of
the governing board of the scholarship granting
organization; and
(6) a copy of the most recent financial audit of the
scholarship granting organization's accounts and records
conducted by an independent certified public accountant in
accordance with auditing standards generally accepted in
the United States, government auditing standards, and
rules adopted by the Department.
(b) A scholarship granting organization whose owner or
operator in the last 7 years has filed for personal bankruptcy
or corporate bankruptcy in a corporation of which he or she
owned more than 20% shall not be eligible to provide
scholarships.
(c) A scholarship granting organization must not have an
owner or operator who owns or operates a qualified school or

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has a family member who is a paid staff or board member of a
participating qualified school.
(d) A scholarship granting organization shall comply with
the anti-discrimination provisions of 42 U.S.C. 2000d.
(e) The Department shall review and either approve or deny
each application to issue certificates of receipt pursuant to
this Act. Approval or denial of an application shall be made on
a periodic basis. Applicants shall be notified of the
Department's determination within 30 business days after the
application is received.
(f) No scholarship granting organization shall issue any
certificates of receipt without first being approved to issue
certificates of receipt.
(Source: P.A. 100-465, eff. 8-31-17.)
(35 ILCS 40/20)
(Section scheduled to be repealed on January 1, 2025)
Sec. 20. Annual review.
(a) Each scholarship granting organization that receives
approval to issue certificates of receipt shall file an
application for recertification on an annual basis. Such
application for recertification shall be in the form and
manner prescribed by the Department and shall include:
(1) certification from the Director or Chief Executive
Officer of the organization that the organization has
complied with and continues to comply with the

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requirements of this Act, including evidence of that
compliance; and
(2) a copy of the organization's current financial
statements.
(b) The Department may revoke the approval of a
scholarship granting organization to issue certificates of
receipt upon a finding that the organization has violated this
Act or any rules adopted under this Act. These violations
shall include, but need not be limited to, any of the
following:
(1) failure to meet the requirements of this Act;
(2) failure to maintain full and adequate records with
respect to the receipt of qualified contributions;
(3) failure to supply such records to the Department;
or
(4) failure to provide notice to the Department of the
issuance of certificates of receipt pursuant to Section 35
of this Act.
(c) Within 5 days after the determination to revoke
approval, the Department shall provide notice of the
determination to the scholarship granting organization and
information regarding the process to request a hearing to
appeal the determination.
(Source: P.A. 100-465, eff. 8-31-17.)
(35 ILCS 40/25)

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(Section scheduled to be repealed on January 1, 2025)
Sec. 25. Contribution authorization certificates.
(a) A taxpayer shall not be allowed a credit pursuant to
this Act for any contribution to a scholarship granting
organization that was made prior to the Department's issuance
of a contribution authorization certificate for such
contribution to the taxpayer.
(b) Prior to making a contribution to a scholarship
granting organization, the taxpayer shall apply to the
Department for a contribution authorization certificate.
(c) A taxpayer who makes more than one contribution to a
scholarship granting organization must make a separate
application for each such contribution authorization
certificate. The application shall be in the form and manner
prescribed by the Department, provided that the application
includes:
(1) the taxpayer's name and address;
(2) the amount the taxpayer will contribute; and
(3) any other information the Department deems
necessary.
(d) The Department may allow taxpayers to make multiple
applications on the same form, provided that each application
shall be treated as a separate application.
(e) The Department shall issue credit authorization
certificates on a first-come, first-served basis based upon
the date that the Department received the taxpayer's

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application for the certificate subject to the provisions of
subsection (e) of Section 10 of this Act.
(f) A taxpayer's aggregate authorized contribution amount
as listed on one or more authorized contribution certificates
issued to the taxpayer shall not exceed the aggregate of the
amounts listed on the taxpayer's applications submitted in
accordance with this Section.
(g) Each contribution authorization certificate shall
state:
(1) the date such certificate was issued;
(2) the date by which the authorized contributions
listed in the certificate must be made, which shall be 60
days from the date of the issuance of a credit
authorization certificate;
(3) the total amount of authorized contributions; and
(4) any other information the Department deems
necessary.
(h) Credit authorization certificates shall be mailed to
the appropriate taxpayers within 3 business days after their
issuance.
(i) A taxpayer may rescind all or part of an authorized
contribution approved under this Act by providing written
notice to the Department. Amounts rescinded shall no longer be
deducted from the cap prescribed in Section 10 of this Act.
(j) The Department shall maintain on its website a running
total of the amount of credits for which taxpayers may make

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applications for contribution authorization certification. The
running total shall be updated every business day.
(Source: P.A. 100-465, eff. 8-31-17.)
(35 ILCS 40/30)
(Section scheduled to be repealed on January 1, 2025)
Sec. 30. Certificates of receipt.
(a) No scholarship granting organization shall issue a
certificate of receipt for any qualified contribution made by
a taxpayer under this Act unless that scholarship granting
organization has been approved to issue certificates of
receipt pursuant to Section 15 of this Act.
(b) No scholarship granting organization shall issue a
certificate of receipt for a contribution made by a taxpayer
unless the taxpayer has been issued a credit authorization
certificate by the Department.
(c) If a taxpayer makes a contribution to a scholarship
granting organization prior to the date by which the
authorized contribution shall be made, the scholarship
granting organization shall, within 30 days of receipt of the
authorized contribution, issue to the taxpayer a written
certificate of receipt.
(d) If a taxpayer fails to make all or a portion of a
contribution prior to the date by which such authorized
contribution is required to be made, the taxpayer shall not be
entitled to a certificate of receipt for that portion of the

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authorized contribution not made.
(e) Each certificate of receipt shall state:
(1) the name and address of the issuing scholarship
granting organization;
(2) the taxpayer's name and address;
(3) the date for each qualified contribution;
(4) the amount of each qualified contribution;
(5) the total qualified contribution amount; and
(6) any other information that the Department may deem
necessary.
(f) Upon the issuance of a certificate of receipt, the
issuing scholarship granting organization shall, within 10
days after issuing the certificate of receipt, provide the
Department with notification of the issuance of such
certificate in the form and manner prescribed by the
Department, provided that such notification shall include:
(1) the taxpayer's name and address;
(2) the date of the issuance of a certificate of
receipt;
(3) the qualified contribution date or dates and the
amounts contributed on such dates;
(4) the total qualified contribution listed on such
certificates;
(5) the issuing scholarship granting organization's
name and address; and
(6) any other information the Department may deem

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necessary.
(g) Any portion of a contribution that a taxpayer fails to
make by the date indicated on the authorized contribution
certificate shall no longer be deducted from the cap
prescribed in Section 10 of this Act.
(Source: P.A. 100-465, eff. 8-31-17.)
(35 ILCS 40/35)
(Section scheduled to be repealed on January 1, 2025)
Sec. 35. Reports.
(a) Within 180 days after the end of its fiscal year, each
scholarship granting organization must provide to the
Department a copy of a financial audit of its accounts and
records conducted by an independent certified public
accountant in accordance with auditing standards generally
accepted in the United States, government auditing standards,
and rules adopted by the Department. The audit must include a
report on financial statements presented in accordance with
generally accepted accounting principles. The audit must
include evidence that no less than 95% of qualified
contributions received were used to provide scholarships to
eligible students. The Department shall review all audits
submitted pursuant to this subsection. The Department shall
request any significant items that were omitted in violation
of a rule adopted by the Department. The items must be provided
within 45 days after the date of request. If a scholarship

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granting organization does not comply with the Department's
request, the Department may revoke the scholarship granting
organization's ability to issue certificates of receipt.
(b) A scholarship granting organization that is approved
to receive qualified contributions shall report to the
Department, on a form prescribed by the Department, by January
31 of each calendar year. The report shall include:
(1) the total number of certificates of receipt issued
during the immediately preceding calendar year;
(2) the total dollar amount of qualified contributions
received, as set forth in the certificates of receipt
issued during the immediately preceding calendar year;
(3) the total number of eligible students utilizing
scholarships for the immediately preceding calendar year
and the school year in progress and the total dollar value
of the scholarships;
(4) the name and address of each qualified school for
which scholarships using qualified contributions were
issued during the immediately preceding calendar year,
detailing the number, grade, race, gender, income level,
and residency by Zip Code of eligible students and the
total dollar value of scholarships being utilized at each
qualified school by priority group, as identified in
subsection (d) of Section 40 of this Act; and
(5) any additional information requested by the
Department.

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(c) On or before the last day of March for each calendar
year, for the immediately preceding calendar year, the
Department shall submit a written report to the Governor, the
President of the Senate, the Speaker of the House of
Representatives, the Minority Leader of the Senate, and the
Minority Leader of the House of Representatives regarding this
Act. The report shall include, but not be limited to, the
following information:
(1) the names and addresses of all scholarship
granting organizations approved to issue certificates of
receipt;
(2) the number and aggregate total of certificates of
receipt issued by each scholarship granting organization;
and
(3) the information reported to the Department
required by subsection (b) of this Section.
(d) The sharing and reporting of student data under this
Section must be in accordance with the requirements of the
Family Educational Rights and Privacy Act and the Illinois
School Student Records Act. All parties must preserve the
confidentiality of such information as required by law. Data
reported by the Department under subsection (c) of this
Section must not disaggregate data to a level that will
disclose demographic data of individual students.
(Source: P.A. 100-465, eff. 8-31-17.)

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(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, beginning in the 2022-2023
school year and for each school year thereafter, a scholarship
granting organization shall give priority to eligible students
who received a scholarship from a scholarship granting
organization during the previous school year. Second priority
shall be given to the following priority groups:
(1) (blank);
(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.

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(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. Each priority
group identified in subsection (d) of this Section shall be
eligible to receive scholarships on a first-come, first-served
basis until April 1 immediately preceding the school year for
which the scholarship is sought, starting with the first
priority group identified in subsection (d) of this Section.
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. 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. A qualified school may set a lower
maximum scholarship amount for eligible students whose family
income falls within paragraphs (2) and (3) of this subsection
(e); that amount may not exceed the necessary costs and fees
for attendance at the qualified school and is subject to the
limitations on average scholarship amounts set forth in
paragraphs (2) and (3) of this subsection, as applicable. The

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qualified school shall notify the scholarship granting
organization of its necessary costs and fees as well as any
maximum scholarship amount set by the 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;
(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;

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(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 2022-2023
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 2023-2024 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.
(h-1) For the 2024-2025 school year and all school years
following, 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.

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(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
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. 102-699, eff. 4-19-22; 102-1059, eff. 6-10-22;
103-154, eff. 6-30-23.)

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(35 ILCS 40/45)
(Section scheduled to be repealed on January 1, 2025)
Sec. 45. State Board responsibilities.
(a) Beginning in the 2019-2020 school year, students who
have been granted a scholarship under this Act shall be
annually assessed at the qualified school where the student
attends school in the same manner in which students that
attend public schools are annually assessed pursuant to
Section 2-3.64a-5 of the School Code. Such qualified school
shall pay costs associated with this requirement.
(b) The Board shall select an independent research
organization, which may be a public or private entity or
university, to which participating qualified schools must
report the scores of students who are receiving scholarships
and are assessed pursuant to subsection (a) of this Section.
Costs associated with the independent research organization
shall be paid by the scholarship granting organizations on a
per-pupil basis or by gifts, grants, or donations received by
the Board under subsection (d) of this Section, as determined
by the Board. The independent research organization must
annually report to the Board on the year-to-year learning
gains of students receiving scholarships on a statewide basis.
The report shall also include, to the extent possible, a
comparison of these learning gains to the statewide learning
gains of public school students with socioeconomic backgrounds

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similar to those of students receiving scholarships. The
annual report shall be delivered to the Board and published on
its website.
(c) Beginning within 120 days after the Board first
receives the annual report by the independent research
organization as provided in subsection (b) of this Section and
on an annual basis thereafter, the Board shall submit a
written report to the Governor, the President of the Senate,
the Speaker of the House of Representatives, the Minority
Leader of the Senate, and the Minority Leader of the House of
Representatives regarding this Act. Such report shall include
an evaluation of the academic performance of students
receiving scholarships and recommendations for improving
student performance.
(d) Subject to the State Officials and Employees Ethics
Act, the Board may receive and expend gifts, grants, and
donations of any kind from any public or private entity to
carry out the purposes of this Section, subject to the terms
and conditions under which the gifts are given, provided that
all such terms and conditions are permissible under law.
(e) The sharing and reporting of student learning gain
data under this Section must be in accordance with
requirements of the Family Educational Rights and Privacy Act
and the Illinois School Student Records Act. All parties must
preserve the confidentiality of such information as required
by law. The annual report must not disaggregate data to a level

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that will disclose the academic level of individual students.
(Source: P.A. 100-465, eff. 8-31-17.)
(35 ILCS 40/50)
(Section scheduled to be repealed on January 1, 2025)
Sec. 50. Qualified school responsibilities. A qualified
school that accepts scholarship students must do all of the
following:
(1) provide to a scholarship granting organization,
upon request, all documentation required for the student's
participation, including the non-public school's cost and
student's fee schedules;
(2) be academically accountable to the custodian for
meeting the educational needs of the student by:
(A) at a minimum, annually providing to the
custodian a written explanation of the student's
progress; and
(B) annually administering assessments required by
subsection (a) of Section 45 of this Act in the same
manner in which they are administered at public
schools pursuant to Section 2-3.64a-5 of the School
Code; the Board shall bill participating qualified
schools for all costs associated with administering
assessments required by this paragraph; the
participating qualified schools shall ensure that all
test security and assessment administration procedures

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are followed; participating qualified schools must
report individual student scores to the custodians of
the students; the independent research organization
described in subsection (b) of Section 45 of this Act
shall be provided all student score data in a secure
manner by the participating qualified school.
The inability of a qualified school to meet the
requirements of this Section shall constitute a basis for the
ineligibility of the qualified school to participate in the
scholarship program as determined by the Board.
(Source: P.A. 100-465, eff. 8-31-17.)
(35 ILCS 40/55)
(Section scheduled to be repealed on January 1, 2025)
Sec. 55. Custodian and student responsibilities.
(a) The custodian must select a qualified school and apply
for the admission of his or her child.
(b) The custodian shall ensure that the student
participating in the scholarship program takes the assessment
required by subsection (a) of Section 45 of this Act.
(c) Each custodian and each student has an obligation to
comply with the qualified school's published policies.
(d) The custodian shall authorize the scholarship granting
organization to access information needed for income
eligibility determinations.
(Source: P.A. 100-465, eff. 8-31-17.)

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(35 ILCS 40/60)
(Section scheduled to be repealed on January 1, 2025)
Sec. 60. Recordkeeping; rulemaking; violations.
(a) Each taxpayer shall, for each taxable year for which
the tax credit provided for under this Act is claimed,
maintain records of the following information: (i)
contribution authorization certificates obtained under Section
25 of this Act and (ii) certificates of receipt obtained under
Section 30 of this Act.
(b) The Board and the Department may adopt rules
consistent with and necessary for the implementation of this
Act.
(c) Violations of State laws or rules and complaints
relating to program participation shall be referred to the
Attorney General.
(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 (i) for tax
years beginning on or after January 1, 2018 and ending before
January 1, 2024 and (ii) for tax years beginning on or after
January 1, 2025. A taxpayer may not take a credit pursuant to
this Act for tax years beginning on or after January 1, 2024.

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(b) This Act is exempt from the provisions of Section 250
of the Illinois Income Tax Act. This Act is repealed on January
1, 2025.
(Source: P.A. 102-16, eff. 6-17-21.)
(35 ILCS 40/70 new)
Sec. 70. Continuation of Act; validation.
(a) This amendatory Act of the 104th General Assembly
manifests the intention of the General Assembly to extend the
repeal of the Invest in Kids Act and have the Invest in Kids
Act continue in effect on and after January 1, 2025.
(b) The Invest in Kids Act shall be deemed to have been in
continuous effect since August 31, 2017 (the effective date of
Public Act 100-465), and it shall continue to be in effect
until it is otherwise lawfully repealed. All previously
enacted amendments to the Invest in Kids Act Act taking effect
on or after January 1, 2025, are hereby validated.
(c) All actions taken in reliance on or pursuant to the
Invest in Kids Act by any person or entity are hereby
validated.
(d) In order to ensure the continuing effectiveness of the
Invest in Kids Act, it is set forth in full and reenacted by
this amendatory Act of the 104th General Assembly. Striking
and underscoring are used only to show changes being made to
the base text. This reenactment is intended as a continuation
of the Act. It is not intended to supersede any amendment to

HB1342 - 30 - LRB104 03317 HLH 13339 b
the Act that is enacted by the 104th General Assembly.
Section 10. The Illinois Income Tax Act is amended by
changing Section 224 as follows:
(35 ILCS 5/224)
Sec. 224. Invest in Kids credit.
(a) For (i) taxable years beginning on or after January 1,
2018 and ending before January 1, 2024 and (ii) taxable years
beginning on or after January 1, 2025, each taxpayer for whom a
tax credit has been awarded by the Department under the Invest
in Kids Act is entitled to a credit against the tax imposed
under subsections (a) and (b) of Section 201 of this Act in an
amount equal to the amount awarded under the Invest in Kids
Act.
(b) For taxable years ending before December 31, 2023, for
partners, shareholders of subchapter S corporations, and
owners of limited liability companies, if the liability
company is treated as a partnership for purposes of federal
and State income taxation, the credit under this Section shall
be determined in accordance with the determination of income
and distributive share of income under Sections 702 and 704
and subchapter S of the Internal Revenue Code. For taxable
years ending on or after December 31, 2023, partners and
shareholders of subchapter S corporations are entitled to a
credit under this Section as provided in Section 251.

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(c) The credit may not be carried back and may not reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset the liability, the earlier credit
shall be applied first.
(d) A tax credit awarded by the Department under the
Invest in Kids Act may not be claimed for any qualified
contribution for which the taxpayer claims a federal income
tax deduction.
(e) This Section is exempt from the provisions of Section
250.
(Source: P.A. 102-699, eff. 4-19-22; 103-396, eff. 1-1-24.)
Section 99. Effective date. This Act takes effect upon
becoming law.