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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 State Treasurer Act is amended by adding | |||||||||||||||||||||||
| 5 | Section 16.11 as follows:
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| 6 | (15 ILCS 505/16.11 new) | |||||||||||||||||||||||
| 7 | Sec. 16.11. Invest in Illinois Higher Education Program. | |||||||||||||||||||||||
| 8 | (a) The State Treasurer shall establish the Invest in | |||||||||||||||||||||||
| 9 | Illinois Higher Education Program. The State Treasurer shall | |||||||||||||||||||||||
| 10 | administer the Program for the purpose of expanding access to | |||||||||||||||||||||||
| 11 | higher education through scholarships awarded from the Invest | |||||||||||||||||||||||
| 12 | in Illinois Higher Education Fund. | |||||||||||||||||||||||
| 13 | (b) The Invest in Illinois Higher Education Fund is hereby | |||||||||||||||||||||||
| 14 | established as a special fund in the State treasury. The Fund | |||||||||||||||||||||||
| 15 | may receive donations as provided in Section 232 of the | |||||||||||||||||||||||
| 16 | Illinois Income Tax Act, as well as gifts, grants, and | |||||||||||||||||||||||
| 17 | appropriations from any lawful source. The State Treasurer | |||||||||||||||||||||||
| 18 | shall use moneys in the Invest in Illinois Higher Education | |||||||||||||||||||||||
| 19 | Fund for the purpose of awarding scholarships to eligible | |||||||||||||||||||||||
| 20 | students. | |||||||||||||||||||||||
| 21 | (c) As used in this Section: | |||||||||||||||||||||||
| 22 | "Eligible student" means an individual who is a member of | |||||||||||||||||||||||
| 23 | a household whose federal adjusted
gross income in the year | |||||||||||||||||||||||
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| 1 | before the student initially receives a scholarship under this | ||||||
| 2 | program does not exceed 300% of the federal poverty level and, | ||||||
| 3 | once the student receives a scholarship, does not exceed 400% | ||||||
| 4 | of the federal poverty level. | ||||||
| 5 | "Necessary costs and fees" includes tuition and the | ||||||
| 6 | additional fixed fees charged for specified purposes that are | ||||||
| 7 | required generally of non-scholarship recipients for each | ||||||
| 8 | academic period for which the scholarship applicant actually | ||||||
| 9 | enrolls, but does not include fees payable only once and other | ||||||
| 10 | contingent deposits that are refundable in whole or in part. | ||||||
| 11 | The State Treasurer may prescribe, by rules consistent with | ||||||
| 12 | this Act, detailed provisions concerning the computation of | ||||||
| 13 | necessary costs and fees. | ||||||
| 14 | "Scholarship" means an educational scholarship awarded to | ||||||
| 15 | an eligible student to attend a community college or public | ||||||
| 16 | university in the State in an amount not exceeding the | ||||||
| 17 | necessary costs and fees to attend that school.
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| 18 | Section 10. The Illinois Income Tax Act is amended by | ||||||
| 19 | adding Section 232 as follows:
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| 20 | (35 ILCS 5/232 new) | ||||||
| 21 | Sec. 232. Invest in Illinois Higher Education credit. | ||||||
| 22 | (a) For taxable years ending on or after December 31, | ||||||
| 23 | 2022, each taxpayer who makes a donation to the Invest in | ||||||
| 24 | Illinois Higher Education Fund during the taxable year is | ||||||
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| 1 | entitled to a credit against the tax imposed by subsections | ||||||
| 2 | (a) and (b) of Section 201 in an amount equal to that donation. | ||||||
| 3 | (b) For partners, shareholders of subchapter S | ||||||
| 4 | corporations, and owners of limited liability companies, if | ||||||
| 5 | the liability company is treated as a partnership for purposes | ||||||
| 6 | of federal and State income taxation, the credit under this | ||||||
| 7 | Section shall be determined in accordance with the | ||||||
| 8 | determination of income and distributive share of income under | ||||||
| 9 | Sections 702 and 704 and subchapter S of the Internal Revenue | ||||||
| 10 | Code. | ||||||
| 11 | (c) The credit may not be carried back and may not reduce | ||||||
| 12 | the taxpayer's liability to less than zero. If the amount of | ||||||
| 13 | the credit exceeds the tax liability for the year, the excess | ||||||
| 14 | may be carried forward and applied to the tax liability of the | ||||||
| 15 | 5 taxable years following the excess credit year. The tax | ||||||
| 16 | credit shall be applied to the earliest year for which there is | ||||||
| 17 | a tax liability. If there are credits for more than one year | ||||||
| 18 | that are available to offset the liability, the earlier credit | ||||||
| 19 | shall be applied first. | ||||||
| 20 | (d) This Section is exempt from the provisions of Section | ||||||
| 21 | 250.
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| 22 | Section 15. The State Finance Act is amended by adding | ||||||
| 23 | Section 5.970 as follows:
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| 24 | (30 ILCS 105/5.970 new) | ||||||
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| 1 | Sec. 5.970. The Invest in Illinois Higher Education Fund.
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| 2 | Section 99. Effective date. This Act takes effect upon | ||||||
| 3 | becoming law.
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