Bill Text: IL SB0225 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Invest in Kids Act. Provides that qualified contributions made on or after June 1, 2024 may be used only to provide scholarships to eligible students who attend a technical academy.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-01-31 - Added as Chief Co-Sponsor Sen. Linda Holmes [SB0225 Detail]

Download: Illinois-2023-SB0225-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0225 Introduced 1/31/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
35 ILCS 40/5
35 ILCS 40/10
Amends the Invest in Kids Act. Provides that qualified contributions made on or after June 1, 2024 may be used only to provide scholarships to eligible students who attend a technical academy.
LRB103 25959 HLH 52311 b
A BILL FOR
SB0225 LRB103 25959 HLH 52311 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 and 10 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(Section scheduled to be repealed on January 1, 2025)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 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
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

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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
focus of the school. To maintain its status as a technical

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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 contributions made on or after
June 1, 2024 may be used only to provide scholarships to
eligible students who attend a technical academy.
"Qualified school", for contributions made prior to June
1, 2024, means a non-public school located in Illinois and
recognized by the Board pursuant to Section 2-3.25o of the
School Code. On and after June 1, 2024, "qualified school"
means a technical academy 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
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)

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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) Prior to June 1, 2024, credits 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.)