Bill Text: IL HB4341 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the State Treasurer Act. Provides that the State Treasurer shall establish and administer the Invest in Illinois Higher Education Program for the purposes of expanding access to higher education through scholarships awarded from the Invest in Illinois Higher Education Fund. Amends the State Finance Act. Creates the Invest in Illinois Higher Education Fund. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to any donations made by the taxpayer to the Invest in Illinois Higher Education Fund. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-16 - Referred to Rules Committee [HB4341 Detail]

Download: Illinois-2023-HB4341-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4341 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
15 ILCS 505/16.11 new
35 ILCS 5/252 new
30 ILCS 105/5.1012 new
Amends the State Treasurer Act. Provides that the State Treasurer shall establish and administer the Invest in Illinois Higher Education Program for the purposes of expanding access to higher education through scholarships awarded from the Invest in Illinois Higher Education Fund. Amends the State Finance Act. Creates the Invest in Illinois Higher Education Fund. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to any donations made by the taxpayer to the Invest in Illinois Higher Education Fund. 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 State Treasurer Act is amended by adding
Section 16.11 as follows:
(15 ILCS 505/16.11 new)
Sec. 16.11. Invest in Illinois Higher Education Program.
(a) The State Treasurer shall establish the Invest in
Illinois Higher Education Program. The State Treasurer shall
administer the Program for the purpose of expanding access to
higher education through scholarships awarded from the Invest
in Illinois Higher Education Fund.
(b) The Invest in Illinois Higher Education Fund is hereby
established as a special fund in the State treasury. The Fund
may receive donations as provided in Section 252 of the
Illinois Income Tax Act, as well as gifts, grants, and
appropriations from any lawful source. The State Treasurer
shall use moneys in the Invest in Illinois Higher Education
Fund for the purpose of awarding scholarships to eligible
students.
(c) As used in this Section:
"Eligible student" means an individual who is a member of
a household with a federal adjusted gross income that, in the

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year before the student first receives a scholarship through
the program established under this Section, is less than or
equal to 300% of the federal poverty income guidelines and
that, in any subsequent year in which the student receives a
scholarship though the program, is less that or equal to 400%
of the federal poverty level.
"Federal poverty guidelines" means the poverty guidelines
updated periodically in the federal register by the U.S.
Department of Health and Human Services under the authority of
42 U.S.C. 9902(2).
"Necessary costs and fees" includes tuition 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, but does not include fees payable only once and other
contingent deposits that are refundable in whole or in part.
The State Treasurer may prescribe, by rules consistent with
this Act, detailed provisions concerning the computation of
necessary costs and fees.
"Scholarship" means an educational scholarship awarded to
an eligible student to attend a community college or public
university in the State in an amount not exceeding the
necessary costs and fees to attend that school.
Section 10. The Illinois Income Tax Act is amended by
adding Section 252 as follows:

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(35 ILCS 5/252 new)
Sec. 252. Invest in Illinois Higher Education credit.
(a) For taxable years ending on or after December 31,
2024, each taxpayer who makes a donation to the Invest in
Illinois Higher Education Fund during the taxable year is
entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 in an amount equal to that donation.
(b) 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.
(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) This Section is exempt from the provisions of Section

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250.
Section 15. The State Finance Act is amended by adding
Section 5.1012 as follows:
(30 ILCS 105/5.1012 new)
Sec. 5.1012. The Invest in Illinois Higher Education Fund.