The bill establishes a new aggregate credit cap of $100,000,000 per year, raised from $75,000,000. Additionally, if the cap is reached in at least two of the previous three years, it can increase by 20% starting from the first day of the next calendar year. This amendment is seen as a method to sustain and potentially expand financial resources available for education while providing significant tax relief to individual taxpayers who contribute to educational programs.
Summary
House Bill 1642 amends the Invest in Kids Act, significantly increasing the tax credit available for qualified contributions made by taxpayers. Under the previous law, taxpayers could claim a credit equal to 75% of their contributions, capped at $1,000,000. HB1642 raises this credit to 100% of the total contributions, with a new cap of $1,333,333 per taxpayer. This change is intended to incentivize higher contributions towards education funding directed towards non-public schools, potentially impacting many families and educational institutions throughout Illinois.
Contention
Despite the optimistic outlook on financial contributions, the changes brought by HB1642 may spark debate regarding the implications for public education funding. Critics may argue that boosting tax credits for non-public school funding could divert essential resources from public schools, potentially widening the educational divide. Moreover, discussions may arise around the fairness of substantial tax credits larger taxpayers can exploit, questioning the equity of this financial structure in the context of overall state education funding.
Personal income tax: voluntary contributions: California Breast Cancer Research Voluntary Tax Contribution Fund and California Cancer Research Voluntary Tax Contribution Fund.
Voluntary tax contributions: California Firefighters’ Memorial Voluntary Tax Contribution Fund: California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund.
Personal income taxes: voluntary contributions: California Breast Cancer Research Voluntary Tax Contribution Fund and California Cancer Research Voluntary Tax Contribution Fund.