Bill Text: IL SB0138 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the School Code. Provides that the State Board of Education shall establish a teacher recruitment and retention program, which shall encourage both new and experienced teachers to seek employment with qualifying public schools by providing for a refundable income tax credit to each participating teacher in the amount of $3,000 per school year for no more than 5 consecutive school years. Provides that the number of participating teachers in the program in any school year shall be limited to 1,000. Contains requirements for participating school districts and participating teachers. Amends the Illinois Income Tax Act establishing the $3,000 tax credit for individuals designated by the State Board of Education as a participating teacher in the teacher recruitment and retention program. Effective July 1, 2025.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-28 - Assigned to Revenue [SB0138 Detail]

Download: Illinois-2025-SB0138-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0138 Introduced 1/17/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
35 ILCS 5/235 new
105 ILCS 5/2-3.206 new
Amends the School Code. Provides that the State Board of Education shall establish a teacher recruitment and retention program, which shall encourage both new and experienced teachers to seek employment with qualifying public schools by providing for a refundable income tax credit to each participating teacher in the amount of $3,000 per school year for no more than 5 consecutive school years. Provides that the number of participating teachers in the program in any school year shall be limited to 1,000. Contains requirements for participating school districts and participating teachers. Amends the Illinois Income Tax Act establishing the $3,000 tax credit for individuals designated by the State Board of Education as a participating teacher in the teacher recruitment and retention program. Effective July 1, 2025.
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A BILL FOR
SB0138 LRB104 03759 LNS 13783 b
AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
adding Section 235 as follows:
(35 ILCS 5/235 new)
Sec. 235. Tax credit for teacher recruitment and
retention.
For taxable years beginning on or after January 1, 2025, an
individual designated as a participating teacher by the State
Board of Education to the Department under subsection (l) of
Section 2-3.206 of the School Code is entitled to a tax credit
against the tax imposed by subsections (a) and (b) of Section
201 equal to $3,000. If the total amount of the tax credit
provided exceeds the taxpayer's income tax liability for a
taxable year, such excess amount shall be refunded to the
taxpayer.
This Section is exempt from the provisions of Section 250.
Section 10. The School Code is amended by adding Section
2-3.206 as follows:
(105 ILCS 5/2-3.206 new)

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Sec. 2-3.206. Teacher recruitment and retention program.
(a) As used in this Section:
"Participating school" means a qualifying public school
that has been selected by the Board to participate in the
program.
"Participating school district" means a public school
district that has been selected by the Board to participate in
the program.
"Participating teacher" means an eligible teacher
participating in the program who holds a Professional Educator
License under Section 21B-20.
"Institution of higher education" means a public
institution of higher education or private institution of
higher education, as those terms are defined in Section 1 of
the Board of Higher Education Act.
"Program" means the teacher recruitment and retention
program established in this Section.
"Qualifying public school" means a public school that is
located in a rural area in the State or a school that has
performed in the lowest 5% of schools in the State as
identified in accordance with the statewide accountability
system established in the State plan under the federal Every
Student Succeeds Act.
"Recently hired" means a licensed teacher, whether a new
or experienced teacher, who has accepted his or her first
school year contract to teach at a qualifying public school

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for the 2025-2026 school year, the current school year, or for
the immediately upcoming school year.
"Rural area" means an area that is more than 5 miles from
the nearest urbanized area and more than 2.5 miles from the
nearest urban cluster.
"School year contract" means a contract of full-time
employment between a teacher and a local board of education
covering a full school year. A contract of employment for a
portion of a school year shall not be counted as a school year
contract, nor shall contracts of employment for portions of a
school year be cumulated and treated as a school year
contract. A school year contract is deemed included within a
contract of full-time employment between a teacher and a local
board of education covering a full calendar or fiscal year.
"Urban cluster" and "urbanized area" have the meanings
given to those terms in the Standards for Defining
Metropolitan and Micropolitan Statistical Areas, 65 FR 82227.
(b) The Board shall establish a teacher recruitment and
retention program. The purpose of the program shall be to
encourage both new and experienced teachers to seek employment
with qualifying public schools by providing for a refundable
income tax credit, as provided under Section 235 of the
Illinois Income Tax Act, to each participating teacher in the
amount of $3,000 per school year for no more than 5 consecutive
school years, subject to conditions provided for under this
Section. The Board may adopt rules as necessary to implement

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and administer the program.
(c) By October 1 of each year, the Board shall determine
which public schools in the State are qualifying public
schools and shall publish a list of all qualifying public
schools on the Board's website. For the purposes of the
program, a school that has been designated as a qualifying
public school shall be eligible for selection as a
participating school for the current school year and for at
least the immediately upcoming school year. The Board shall
develop criteria for the selection of no more than 100
participating school districts and shall publish the selection
criteria simultaneously with the publication of the list of
qualifying school districts on the Board's website.
By December 1 of each year, the Board shall select no more
than 100 participating school districts and shall publish a
list of all participating school districts on the Board's
website. A school district that has been designated as a
participating school district shall be eligible to participate
in the program for the current school year and for at least the
immediately upcoming school year. The Board shall determine
the total number of participating teachers authorized for each
participating school district.
(d) The Board shall solicit applications from teachers who
meet the eligibility criteria provided for in subsections (g),
(h), and (i) and may share with participating school districts
such applications and related materials submitted by teachers.

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(e) The Board may provide guidance and technical
assistance to teachers, participating schools, and school
districts with participating schools in the program.
(f) The Board shall establish program objectives and shall
annually measure and evaluate the program. Beginning with the
2026-2027 school year, and by December 1 of each year, the
Board shall file with the Governor and the General Assembly a
report covering the immediately preceding school year that
includes, but is not limited to, the following information:
(1) the positions filled by participating teachers
with corresponding information regarding the subject
matter and grade or grades taught; and
(2) the length of time participating teachers have
been participating in the program.
(g) In order to participate in the program, a teacher
shall:
(1) have been recently hired to teach at a
participating school;
(2) have attained a bachelor's degree in education
from an institution of higher education with a teacher
certification program approved by the Board; and
(3) hold a valid Professional Educator License issued
by the Board.
(h) Teachers who meet the eligibility criteria provided in
subsection (g) and who wish to participate in the program
shall submit to the Board a completed application to

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participate in the program, on a form and in a manner
prescribed by the Board. Each application shall include, but
is not limited to:
(1) a copy of a teacher's school year contract to
teach at a participating school; and
(2) written verification by the principal or other
school personnel of the participating school that the
teacher was recently hired as defined under this Section.
(i) Eligible teachers who complete the application process
prescribed by the Board shall be accepted to participate in
the program on an annual basis, subject to the continuation of
the program, the provisions of subsection (m), and for good
cause shown by the Board.
(j) A teacher who is accepted by the Board to participate
in the program shall be allowed to continue as a participating
teacher in the program on an annual basis for up to 5
consecutive school years if he or she remains employed under a
school year contract as a teacher at the same school district
continuously, regardless of whether the school remains a
participating or qualifying public school, and subject to
continuation of the program, the provisions of subsection (m),
and for good cause shown by the Board.
(k) A participating teacher who is involuntarily
transferred to another school within the same participating or
qualifying school district shall be eligible to continue
participating in the program on the same terms and conditions

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as provided in subsection (j). A participating teacher who
voluntarily transfers to another school is not eligible to
continue participating in the program, effective immediately
upon the transfer.
A participating teacher who receives an annual performance
evaluation of "unsatisfactory" as provided in Sections 24A-5
and 34-85c, shall be permanently ineligible to participate in
the program upon the conclusion of the school year in which he
or she received such rating.
A participating teacher who lawfully takes a leave of
absence pursuant to any State or federal law retains
eligibility to continue participating in the program if he or
she remains unemployed under a school year contract as teacher
at the same school continuously.
(l) By July 31 of each year, the Board shall notify the
Department of Revenue of each participating teacher who has
satisfied all terms and conditions of the program for the
immediately preceding school year.
(m) The number of participating teachers in the program in
any school year shall be limited to 1,000 participating
teachers statewide. In the discretion of the Board,
participation in the program may be determined according to
the following order of priority:
(1) Participating teachers shall be prioritized over
teachers not yet participating in the program.
(2) Among teachers participating in the program, those

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with greater seniority in the program shall be prioritized
over those with less seniority.
(3) No new applications for the program shall be
accepted after December 31, 2035.
Section 99. Effective date. This Act takes effect July 1,
2025.