Illinois 2023-2024 Regular Session

Illinois House Bill HB5081 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5081 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/241 new Creates the Investing in Tomorrow's Workforce Act. Creates an income tax credit for a taxpayer that makes a qualified contribution to a scholarship granting organization for which the taxpayer has received a certificate of receipt from the organization. Effective immediately. LRB103 36429 HLH 66531 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5081 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/241 new New Act 35 ILCS 5/241 new Creates the Investing in Tomorrow's Workforce Act. Creates an income tax credit for a taxpayer that makes a qualified contribution to a scholarship granting organization for which the taxpayer has received a certificate of receipt from the organization. Effective immediately. LRB103 36429 HLH 66531 b LRB103 36429 HLH 66531 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5081 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
3	3	New Act35 ILCS 5/241 new New Act 35 ILCS 5/241 new
4	4	New Act
5	5	35 ILCS 5/241 new
6	6	Creates the Investing in Tomorrow's Workforce Act. Creates an income tax credit for a taxpayer that makes a qualified contribution to a scholarship granting organization for which the taxpayer has received a certificate of receipt from the organization. Effective immediately.
7	7	LRB103 36429 HLH 66531 b LRB103 36429 HLH 66531 b
8	8	LRB103 36429 HLH 66531 b
9	9	A BILL FOR
10	10	HB5081LRB103 36429 HLH 66531 b HB5081 LRB103 36429 HLH 66531 b
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12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the
16	16	5 Investing in Tomorrow's Workforce Act.
17	17	6 Section 5. Definitions. As used in this Act:
18	18	7 "Authorized contribution" means the contribution amount
19	19	8 that is listed on the contribution authorization certificate
20	20	9 issued to the taxpayer.
21	21	10 "Board" means the State Board of Education.
22	22	11 "Contribution" means a donation made by the taxpayer
23	23	12 during the taxable year for providing scholarships as provided
24	24	13 in this Act.
25	25	14 "Custodian" means, with respect to eligible students, an
26	26	15 Illinois resident who is a parent or legal guardian of the
27	27	16 eligible student or students.
28	28	17 "Department" means the Department of Revenue.
29	29	18 "Eligible student" means a child who:
30	30	19 (1) is a member of a household whose federal adjusted
31	31	20 gross income in the year before the child initially
32	32	21 receives a scholarship under this Act does not exceed 300%
33	33	22 of the federal poverty level and, once the child receives
34	34	23 a scholarship under this Act, does not exceed 400% of the
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5081 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
39	39	New Act35 ILCS 5/241 new New Act 35 ILCS 5/241 new
40	40	New Act
41	41	35 ILCS 5/241 new
42	42	Creates the Investing in Tomorrow's Workforce Act. Creates an income tax credit for a taxpayer that makes a qualified contribution to a scholarship granting organization for which the taxpayer has received a certificate of receipt from the organization. Effective immediately.
43	43	LRB103 36429 HLH 66531 b LRB103 36429 HLH 66531 b
44	44	LRB103 36429 HLH 66531 b
45	45	A BILL FOR
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51	51	New Act
52	52	35 ILCS 5/241 new
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71	71	1 federal poverty level;
72	72	2 (2) is eligible to attend a public elementary school
73	73	3 or high school in Illinois in the semester immediately
74	74	4 before the semester during which he or she first receives
75	75	5 a scholarship under this Act or is starting school in
76	76	6 Illinois for the first time when he or she first receives a
77	77	7 scholarship under this Act; and
78	78	8 (3) resides in Illinois while receiving a scholarship
79	79	9 under this Act.
80	80	10 "Family member" means a parent, child, or sibling, whether
81	81	11 by whole blood, half blood, or adoption; a spouse; or a
82	82	12 stepchild.
83	83	13 "Jointly administered CTE program" means a program or set
84	84	14 of programs within a qualified school located in Illinois, as
85	85	15 determined by the State Board of Education under Section 7.5
86	86	16 of this Act.
87	87	17 "Necessary costs and fees" includes the customary charge
88	88	18 for instruction and use of facilities in general and the
89	89	19 additional fixed fees charged for specified purposes that are
90	90	20 required generally of non-scholarship recipients for each
91	91	21 academic period for which the scholarship applicant actually
92	92	22 enrolls, including costs associated with student assessments.
93	93	23 "Necessary cost and fees" does not include fees payable only
94	94	24 once or other contingent deposits that are refundable in whole
95	95	25 or in part. The Board may prescribe, by rules consistent with
96	96	26 this Act, detailed provisions concerning the computation of
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107	107	1 necessary costs and fees.
108	108	2 "Qualified contribution" means the authorized contribution
109	109	3 made by a taxpayer to a scholarship granting organization for
110	110	4 which the taxpayer has received a certificate of receipt from
111	111	5 such organization.
112	112	6 "Qualified school" means a technical academy in the State.
113	113	7 "Scholarship" means an educational scholarship awarded to
114	114	8 an eligible student to attend a qualified school of their
115	115	9 custodians' choice in an amount not exceeding the necessary
116	116	10 costs and fees to attend that school.
117	117	11 "Scholarship granting organization" means an entity that:
118	118	12 (1) is exempt from taxation under Section 501(c)(3) of
119	119	13 the Internal Revenue Code;
120	120	14 (2) uses at least 95% of the qualified contributions
121	121	15 received during a taxable year for scholarships;
122	122	16 (3) provides scholarships to students in accordance
123	123	17 with this Act;
124	124	18 (4) deposits and holds qualified contributions and any
125	125	19 income derived from qualified contributions in an account
126	126	20 that is separate from the organization's operating fund or
127	127	21 other funds until such qualified contributions or income
128	128	22 is withdrawn for use; and
129	129	23 (5) is approved to issue certificates of receipt.
130	130	24 "Taxpayer" means any individual, corporation, partnership,
131	131	25 trust, or other entity subject to the Illinois income tax. For
132	132	26 the purposes of this Act, spouses filing a joint return shall
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143	143	1 be considered one taxpayer.
144	144	2 "Technical academy" means a nonpublic school located in
145	145	3 Illinois that:
146	146	4 (1) registers with the Board under Section 2-3.25o of
147	147	5 the School Code;
148	148	6 (2) operates or will operate a jointly administered
149	149	7 CTE program as the primary focus of the academy; and
150	150	8 (3) partners with the United States Department of
151	151	9 Labor's Office of Apprenticeship, or its successor
152	152	10 organization.
153	153	11 To maintain its status as a technical academy, the academy
154	154	12 must obtain recognition from the Board under Section 2-3.25o
155	155	13 of the School Code within 2 calendar years of its registration
156	156	14 with the Board.
157	157	15 Section 7.5. Determination of jointly administered CTE
158	158	16 programs.
159	159	17 (a) Upon its own motion, or upon petition from a qualified
160	160	18 school, the State Board of Education shall determine whether a
161	161	19 program or set of programs offered or proposed by a qualified
162	162	20 school provides coursework and training in career and
163	163	21 technical education pathways aligned to industry-recognized
164	164	22 certifications and credentials. The State Board of Education
165	165	23 shall make that determination based upon whether the
166	166	24 industry-recognized certifications or credentials that are the
167	167	25 focus of a qualified school's coursework and training program
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178	178	1 or set of programs (i) are associated with an occupation
179	179	2 determined to fall under the LEADING or EMERGING priority
180	180	3 sectors as determined through Illinois' Workforce Innovation
181	181	4 and Opportunity Act Unified State Plan and (ii) provide wages
182	182	5 that are at least 70% of the average annual wage in the State,
183	183	6 as calculated by the United States Bureau of Labor Statistics.
184	184	7 (b) The State Board of Education shall publish a list of
185	185	8 approved jointly administered CTE programs on its website and
186	186	9 otherwise make that list available to the public. A qualified
187	187	10 school may petition the State Board of Education to obtain a
188	188	11 determination that a proposed program or set of programs that
189	189	12 it seeks to offer qualifies as a jointly administered CTE
190	190	13 program under subsection (a) of this Section. A petitioner
191	191	14 shall file one original petition in the form provided by the
192	192	15 State Board of Education and in the manner specified by the
193	193	16 State Board of Education. The petitioner may withdraw his or
194	194	17 her petition by submitting a written statement to the State
195	195	18 Board of Education indicating the petitioner's intent to
196	196	19 withdraw. The State Board of Education shall approve or deny a
197	197	20 petition within 180 days of its submission and, upon approval,
198	198	21 shall proceed to add the program or set of programs to the list
199	199	22 of approved jointly administered CTE programs. The approval or
200	200	23 denial of any petition is a final decision of the Board,
201	201	24 subject to judicial review under the Administrative Review
202	202	25 Law. Jurisdiction and venue are vested in the circuit court.
203	203	26 (c) The State Board of Education shall evaluate the
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214	214	1 approved jointly administered CTE programs once every 5 years.
215	215	2 During each evaluation, the State Board of Education shall
216	216	3 determine whether these programs continue to meet the
217	217	4 requirements of subsection (a) of this Section.
218	218	5 Section 10. Credit awards.
219	219	6 (a) The Department shall award credits against the tax
220	220	7 imposed under subsections (a) and (b) of Section 201 of the
221	221	8 Illinois Income Tax Act to taxpayers who make qualified
222	222	9 contributions. For contributions made under this Act, the
223	223	10 credit shall be equal to 100% of the total amount of qualified
224	224	11 contributions made by the taxpayer during a taxable year, not
225	225	12 to exceed a credit of $1,000,000 per taxpayer.
226	226	13 (b) The aggregate amount of all credits the Department may
227	227	14 award under this Act in any calendar year may not exceed
228	228	15 $75,000,000.
229	229	16 (c) Contributions made by corporations (including
230	230	17 Subchapter S corporations), partnerships, and trusts under
231	231	18 this Act may not be directed to a particular subset of
232	232	19 qualified schools, a particular qualified school, a particular
233	233	20 group of students, or a particular student. Contributions made
234	234	21 by individuals under this Act may be directed to a particular
235	235	22 subset of qualified schools or a particular qualified school
236	236	23 but may not be directed to a particular group of students or a
237	237	24 particular student.
238	238	25 (d) No credit shall be taken under this Act for any
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249	249	1 qualified contribution for which the taxpayer claims a federal
250	250	2 income tax deduction.
251	251	3 (e) Credits shall be awarded in a manner that the
252	252	4 Department determines is geographically proportionate to
253	253	5 enrollment in recognized nonpublic qualified schools in
254	254	6 Illinois. If the cap on the aggregate credits that may be
255	255	7 awarded by the Department is not reached by June 1 of a given
256	256	8 year, the Department shall award the remaining credits on a
257	257	9 first-come, first-served basis, without regard to the
258	258	10 limitation of this subsection.
259	259	11 Section 15. Approval to issue certificates of receipt.
260	260	12 (a) A scholarship granting organization shall submit an
261	261	13 application for approval to issue certificates of receipt in
262	262	14 the form and manner prescribed by the Department, provided
263	263	15 that each application shall include:
264	264	16 (1) documentary evidence that the scholarship granting
265	265	17 organization has been granted an exemption from taxation
266	266	18 under Section 501(c)(3) of the Internal Revenue Code;
267	267	19 (2) certification that all qualified contributions and
268	268	20 any income derived from qualified contributions are
269	269	21 deposited and held in an account that is separate from the
270	270	22 scholarship granting organization's operating or other
271	271	23 funds until such qualified contributions or income are
272	272	24 withdrawn for use;
273	273	25 (3) certification that the scholarship granting
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284	284	1 organization will use at least 95% of its annual revenue
285	285	2 from qualified contributions for scholarships;
286	286	3 (4) certification that the scholarship granting
287	287	4 organization will provide scholarships to eligible
288	288	5 students;
289	289	6 (5) a list of the names and addresses of all members of
290	290	7 the governing board of the scholarship granting
291	291	8 organization; and
292	292	9 (6) a copy of the most recent financial audit of the
293	293	10 scholarship granting organization's accounts and records
294	294	11 conducted by an independent certified public accountant in
295	295	12 accordance with auditing standards generally accepted in
296	296	13 the United States, government auditing standards, and
297	297	14 rules adopted by the Department.
298	298	15 (b) A scholarship granting organization whose owner or
299	299	16 operator has, in the 7 years immediately preceding the date of
300	300	17 the application, filed for personal bankruptcy or corporate
301	301	18 bankruptcy involving a corporation in which the owner owned
302	302	19 more than 20% shall not be eligible to provide scholarships.
303	303	20 (c) A scholarship granting organization must not have an
304	304	21 owner or operator who owns or operates a qualified school or
305	305	22 has a family member who is a paid staff member or board member
306	306	23 of a participating qualified school.
307	307	24 (d) A scholarship granting organization shall comply with
308	308	25 the anti-discrimination provisions of 42 U.S.C. 2000d.
309	309	26 (e) The Department shall review and either approve or deny
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320	320	1 each application to issue certificates of receipt under this
321	321	2 Act. Approval or denial of an application shall be made on a
322	322	3 periodic basis. Applicants shall be notified of the
323	323	4 Department's determination within 30 business days after the
324	324	5 application is received.
325	325	6 (f) No scholarship granting organization shall issue any
326	326	7 certificate of receipt without first being approved to issue
327	327	8 certificates of receipt.
328	328	9 Section 20. Annual review.
329	329	10 (a) Each scholarship granting organization that receives
330	330	11 approval to issue certificates of receipt shall file an
331	331	12 application for recertification on an annual basis. Such
332	332	13 application for recertification shall be in the form and
333	333	14 manner prescribed by the Department and shall include:
334	334	15 (1) a certification from the Director or Chief
335	335	16 Executive Officer of the organization that the
336	336	17 organization has complied with and continues to comply
337	337	18 with the requirements of this Act, including evidence of
338	338	19 that compliance; and
339	339	20 (2) a copy of the organization's current financial
340	340	21 statements.
341	341	22 (b) The Department may revoke the approval of a
342	342	23 scholarship granting organization to issue certificates of
343	343	24 receipt upon a finding that the organization has violated this
344	344	25 Act or any rules adopted under this Act. These violations
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355	355	1 shall include, but need not be limited to, any of the
356	356	2 following:
357	357	3 (1) failure to meet the requirements of this Act;
358	358	4 (2) failure to maintain full and adequate records with
359	359	5 respect to the receipt of qualified contributions;
360	360	6 (3) failure to supply such records to the Department;
361	361	7 or
362	362	8 (4) failure to provide notice to the Department of the
363	363	9 issuance of certificates of receipt under Section 35 of
364	364	10 this Act.
365	365	11 (c) Within 5 days after the determination to revoke
366	366	12 approval, the Department shall provide notice of the
367	367	13 determination to the scholarship granting organization and
368	368	14 information regarding the process to request a hearing to
369	369	15 appeal the determination.
370	370	16 Section 25. Contribution authorization certificates.
371	371	17 (a) A taxpayer shall not be allowed a credit under this Act
372	372	18 for any contribution to a scholarship granting organization
373	373	19 that was made before the Department issues to the taxpayer a
374	374	20 contribution authorization certificate for the contribution.
375	375	21 (b) Before making a contribution to a scholarship granting
376	376	22 organization, the taxpayer shall apply to the Department for a
377	377	23 contribution authorization certificate.
378	378	24 (c) A taxpayer who makes more than one contribution to a
379	379	25 scholarship granting organization must make a separate
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390	390	1 application for each contribution authorization certificate.
391	391	2 The application shall be in the form and manner prescribed by
392	392	3 the Department, provided that the application includes:
393	393	4 (1) the taxpayer's name and address;
394	394	5 (2) the amount the taxpayer will contribute; and
395	395	6 (3) any other information the Department deems
396	396	7 necessary.
397	397	8 (d) The Department may allow taxpayers to make multiple
398	398	9 applications on the same form, provided that each application
399	399	10 shall be treated as a separate application.
400	400	11 (e) The Department shall issue credit authorization
401	401	12 certificates on a first-come, first-served basis based upon
402	402	13 the date that the Department received the taxpayer's
403	403	14 application for the certificate subject to the provisions of
404	404	15 subsection (e) of Section 10 of this Act.
405	405	16 (f) A taxpayer's aggregate authorized contribution amount,
406	406	17 as listed on one or more authorized contribution certificates
407	407	18 issued to the taxpayer, shall not exceed the aggregate of the
408	408	19 amounts listed on the taxpayer's applications submitted in
409	409	20 accordance with this Section.
410	410	21 (g) Each contribution authorization certificate shall
411	411	22 state:
412	412	23 (1) the date the certificate was issued;
413	413	24 (2) the date by which the authorized contributions
414	414	25 listed in the certificate must be made, which shall be 60
415	415	26 days from the date of the issuance of a credit
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426	426	1 authorization certificate;
427	427	2 (3) the total amount of authorized contributions; and
428	428	3 (4) any other information the Department deems
429	429	4 necessary.
430	430	5 (h) Credit authorization certificates shall be mailed to
431	431	6 the appropriate taxpayers within 3 business days after their
432	432	7 issuance.
433	433	8 (i) A taxpayer may rescind all or part of an authorized
434	434	9 contribution approved under this Act by providing written
435	435	10 notice to the Department. Amounts rescinded shall no longer be
436	436	11 deducted from the cap prescribed in Section 10 of this Act.
437	437	12 (j) The Department shall maintain on its website a running
438	438	13 total of the amount of credits for which taxpayers may make
439	439	14 applications for contribution authorization certification. The
440	440	15 running total shall be updated every business day.
441	441	16 Section 30. Certificates of receipt.
442	442	17 (a) No scholarship granting organization shall issue a
443	443	18 certificate of receipt for any qualified contribution made by
444	444	19 a taxpayer under this Act unless that scholarship granting
445	445	20 organization has been approved to issue certificates of
446	446	21 receipt under Section 15 of this Act.
447	447	22 (b) No scholarship granting organization shall issue a
448	448	23 certificate of receipt for a contribution made by a taxpayer
449	449	24 unless the taxpayer has been issued a credit authorization
450	450	25 certificate by the Department.
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461	461	1 (c) If a taxpayer makes a contribution to a scholarship
462	462	2 granting organization before the date by which the authorized
463	463	3 contribution shall be made, the scholarship granting
464	464	4 organization shall, within 30 days of receipt of the
465	465	5 authorized contribution, issue to the taxpayer a written
466	466	6 certificate of receipt.
467	467	7 (d) If a taxpayer fails to make all or a portion of a
468	468	8 contribution before the date by which the authorized
469	469	9 contribution is required to be made, the taxpayer shall not be
470	470	10 entitled to a certificate of receipt for the portion of the
471	471	11 authorized contribution not made.
472	472	12 (e) Each certificate of receipt shall state:
473	473	13 (1) the name and address of the issuing scholarship
474	474	14 granting organization;
475	475	15 (2) the taxpayer's name and address;
476	476	16 (3) the date for each qualified contribution;
477	477	17 (4) the amount of each qualified contribution;
478	478	18 (5) the total qualified contribution amount; and
479	479	19 (6) any other information that the Department may deem
480	480	20 necessary.
481	481	21 (f) Upon the issuance of a certificate of receipt, the
482	482	22 issuing scholarship granting organization shall, within 10
483	483	23 days after issuing the certificate of receipt, provide the
484	484	24 Department with notification of the issuance of the
485	485	25 certificate in the form and manner prescribed by the
486	486	26 Department, provided that the notification shall include:
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497	497	1 (1) the taxpayer's name and address;
498	498	2 (2) the date of the issuance of a certificate of
499	499	3 receipt;
500	500	4 (3) the qualified contribution date or dates and the
501	501	5 amounts contributed on those dates;
502	502	6 (4) the total qualified contribution listed on the
503	503	7 certificates;
504	504	8 (5) the issuing scholarship granting organization's
505	505	9 name and address; and
506	506	10 (6) any other information the Department may deem
507	507	11 necessary.
508	508	12 (g) Any portion of a contribution that a taxpayer fails to
509	509	13 make by the date indicated on the authorized contribution
510	510	14 certificate shall no longer be deducted from the cap
511	511	15 prescribed in Section 10 of this Act.
512	512	16 Section 35. Reports.
513	513	17 (a) Within 180 days after the end of its fiscal year, each
514	514	18 scholarship granting organization must provide to the
515	515	19 Department a copy of a financial audit of its accounts and
516	516	20 records conducted by an independent certified public
517	517	21 accountant in accordance with auditing standards generally
518	518	22 accepted in the United States, government auditing standards,
519	519	23 and rules adopted by the Department. The audit must include a
520	520	24 report on financial statements presented in accordance with
521	521	25 generally accepted accounting principles. The audit must
522	522
523	523
524	524
525	525
526	526
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532	532	1 include evidence that no less than 95% of qualified
533	533	2 contributions received were used to provide scholarships to
534	534	3 eligible students. The Department shall review all audits
535	535	4 submitted under this subsection. The Department shall request
536	536	5 any significant items that were omitted in violation of a rule
537	537	6 adopted by the Department. The items must be provided within
538	538	7 45 days after the date of request. If a scholarship granting
539	539	8 organization does not comply with the Department's request,
540	540	9 the Department may revoke the scholarship granting
541	541	10 organization's ability to issue certificates of receipt.
542	542	11 (b) A scholarship granting organization that is approved
543	543	12 to receive qualified contributions shall report to the
544	544	13 Department, on a form prescribed by the Department, by January
545	545	14 31 of each calendar year. The report shall include:
546	546	15 (1) the total number of certificates of receipt issued
547	547	16 during the immediately preceding calendar year;
548	548	17 (2) the total dollar amount of qualified contributions
549	549	18 received, as set forth in the certificates of receipt
550	550	19 issued during the immediately preceding calendar year;
551	551	20 (3) the total number of eligible students using
552	552	21 scholarships for the immediately preceding calendar year
553	553	22 and the academic year in progress and the total dollar
554	554	23 value of the scholarships;
555	555	24 (4) the name and address of each qualified school for
556	556	25 which scholarships using qualified contributions were
557	557	26 issued during the immediately preceding calendar year,
558	558
559	559
560	560
561	561
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568	568	1 detailing the number, grade, race, gender, income level,
569	569	2 and residency by zip code of eligible students and the
570	570	3 total dollar value of scholarships being used at each
571	571	4 qualified school by priority group, as identified in
572	572	5 subsection (d) of Section 40 of this Act; and
573	573	6 (5) any additional information requested by the
574	574	7 Department.
575	575	8 (c) On or before the last day of March for each calendar
576	576	9 year, for the immediately preceding calendar year, the
577	577	10 Department shall submit a written report to the Governor, the
578	578	11 President of the Senate, the Speaker of the House of
579	579	12 Representatives, the Minority Leader of the Senate, and the
580	580	13 Minority Leader of the House of Representatives regarding this
581	581	14 Act. The report shall include, but not be limited to, the
582	582	15 following information:
583	583	16 (1) the names and addresses of all scholarship
584	584	17 granting organizations approved to issue certificates of
585	585	18 receipt;
586	586	19 (2) the number and aggregate total of certificates of
587	587	20 receipt issued by each scholarship granting organization;
588	588	21 and
589	589	22 (3) the information reported to the Department
590	590	23 required by subsection (b) of this Section.
591	591	24 (d) The sharing and reporting of student data under this
592	592	25 Section must be in accordance with the requirements of the
593	593	26 federal Family Educational Rights and Privacy Act and the
594	594
595	595
596	596
597	597
598	598
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604	604	1 Illinois School Student Records Act. All parties must preserve
605	605	2 the confidentiality of such information as required by law.
606	606	3 Data reported by the Department under subsection (c) of this
607	607	4 Section must not disaggregate data to a level that will
608	608	5 disclose demographic data of individual students.
609	609	6 Section 40. Scholarship granting organization
610	610	7 responsibilities.
611	611	8 (a) Before granting a scholarship for an academic year,
612	612	9 each scholarship granting organization shall assess and
613	613	10 document each student's eligibility for the academic year.
614	614	11 (b) A scholarship granting organization shall grant
615	615	12 scholarships only to eligible students.
616	616	13 (c) A scholarship granting organization shall allow an
617	617	14 eligible student to attend any qualified school of the
618	618	15 student's choosing, subject to the availability of funds.
619	619	16 (d) In granting scholarships, a scholarship granting
620	620	17 organization shall give priority to eligible students who
621	621	18 received a scholarship from a scholarship granting
622	622	19 organization during the previous qualified school year. Second
623	623	20 priority shall be given to the following priority groups:
624	624	21 (1) eligible students who are members of a household
625	625	22 whose previous year's total annual income does not exceed
626	626	23 185% of the federal poverty level; and
627	627	24 (2) eligible students who are siblings of students
628	628	25 currently receiving a scholarship.
629	629
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631	631
632	632
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639	639	1 (d-5) A scholarship granting organization shall begin
640	640	2 granting scholarships no later than the February 1 preceding
641	641	3 the academic year for which the scholarship is sought. Each
642	642	4 priority group identified in subsection (d) of this Section
643	643	5 shall be eligible to receive scholarships on a first-come,
644	644	6 first-served basis until the April 1 immediately preceding the
645	645	7 academic year for which the scholarship is sought, starting
646	646	8 with the first priority group identified in subsection (d) of
647	647	9 this Section. Applications for scholarships for eligible
648	648	10 students meeting the qualifications of one or more priority
649	649	11 groups that are received before April 1 must be either
650	650	12 approved or denied within 10 business days after receipt.
651	651	13 Beginning April 1, all eligible students shall be eligible to
652	652	14 receive scholarships without regard to the priority groups
653	653	15 identified in subsection (d) of this Section.
654	654	16 (e) Except as provided in subsection (e-5) of this
655	655	17 Section, scholarships shall not exceed the lesser of (i) the
656	656	18 statewide average operational expense per student among public
657	657	19 schools or (ii) the necessary costs and fees for attendance at
658	658	20 the qualified school. A qualified school may set a lower
659	659	21 maximum scholarship amount for eligible students whose family
660	660	22 income falls within paragraphs (2) and (3) of this subsection
661	661	23 (e); that amount may not exceed the necessary costs and fees
662	662	24 for attendance at the qualified school and is subject to the
663	663	25 limitations on average scholarship amounts set forth in
664	664	26 paragraphs (2) and (3) of this subsection, as applicable. The
665	665
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675	675	1 qualified school shall notify the scholarship granting
676	676	2 organization of its necessary costs and fees as well as any
677	677	3 maximum scholarship amount set by the qualified school.
678	678	4 Scholarships shall be awarded as follows:
679	679	5 (1) for eligible students whose household income is
680	680	6 less than 185% of the federal poverty level, the
681	681	7 scholarship shall be 100% of the amount determined under
682	682	8 this subsection (e) and subsection (e-5) of this Section;
683	683	9 (2) for eligible students whose household income is
684	684	10 185% or more of the federal poverty level but less than
685	685	11 250% of the federal poverty level, the average of
686	686	12 scholarships shall be 75% of the amount determined under
687	687	13 this subsection (e) and subsection (e-5) of this Section;
688	688	14 and
689	689	15 (3) for eligible students whose household income is
690	690	16 250% or more of the federal poverty level, the average of
691	691	17 scholarships shall be 50% of the amount determined under
692	692	18 this subsection (e) and subsection (e-5) of this Section.
693	693	19 (e-5) The statewide average operational expense per
694	694	20 student among public schools shall be multiplied by the
695	695	21 following factors: (1) for students determined eligible to
696	696	22 receive services under the federal Individuals with
697	697	23 Disabilities Education Act, 2; (2) for students who are
698	698	24 English learners, as defined in subsection (d) of Section
699	699	25 14C-2 of the School Code, 1.2; and (3) for students who are
700	700	26 gifted and talented children, as defined in Section 14A-20 of
701	701
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703	703
704	704
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711	711	1 the School Code, 1.1.
712	712	2 (f) A scholarship granting organization shall distribute
713	713	3 scholarship payments to the participating qualified school
714	714	4 where the student is enrolled.
715	715	5 (g) Each scholarship granting organization shall expend
716	716	6 all qualified contributions received during the calendar year
717	717	7 in which the qualified contributions were received. No
718	718	8 qualified contributions may be carried forward to the
719	719	9 following calendar year.
720	720	10 (h) A scholarship granting organization shall allow an
721	721	11 eligible student to transfer a scholarship during the academic
722	722	12 year to any other participating qualified school of the
723	723	13 custodian's choice. Such scholarships shall be prorated.
724	724	14 (i) With the prior approval of the Department, a
725	725	15 scholarship granting organization may transfer funds to
726	726	16 another scholarship granting organization if additional funds
727	727	17 are required to meet scholarship demands at the receiving
728	728	18 scholarship granting organization. All transferred funds must
729	729	19 be deposited by the receiving scholarship granting
730	730	20 organization into its scholarship accounts. All transferred
731	731	21 amounts received by any scholarship granting organization must
732	732	22 be separately disclosed to the Department.
733	733	23 (j) If the approval of a scholarship granting organization
734	734	24 is revoked as provided in Section 20 of this Act or the
735	735	25 scholarship granting organization is dissolved, all remaining
736	736	26 qualified contributions of the scholarship granting
737	737
738	738
739	739
740	740
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747	747	1 organization shall be transferred to another scholarship
748	748	2 granting organization. All transferred funds must be deposited
749	749	3 by the receiving scholarship granting organization into its
750	750	4 scholarship accounts.
751	751	5 (k) Scholarship granting organizations shall make
752	752	6 reasonable efforts to advertise the availability of
753	753	7 scholarships to eligible students.
754	754	8 Section 45. State Board responsibilities.
755	755	9 (a) Students who have been granted a scholarship under
756	756	10 this Act shall be annually assessed at the qualified school
757	757	11 where the student attends qualified school in the same manner
758	758	12 in which students that attend public schools are annually
759	759	13 assessed under Section 2-3.64a-5 of the School Code. Such
760	760	14 qualified school shall pay costs associated with this
761	761	15 requirement.
762	762	16 (b) The Board shall select an independent research
763	763	17 organization, which may be a public or private entity or
764	764	18 university, to which the participating qualified school must
765	765	19 report the scores of students who are receiving scholarships
766	766	20 and are assessed under subsection (a) of this Section. Costs
767	767	21 associated with the independent research organization shall be
768	768	22 paid by the scholarship granting organizations on a per-pupil
769	769	23 basis or by gifts, grants, or donations received by the Board
770	770	24 under subsection (d) of this Section, as determined by the
771	771	25 Board. The independent research organization must annually
772	772
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782	782	1 report to the Board on the year-to-year learning gains of
783	783	2 students receiving scholarships on a statewide basis. The
784	784	3 report shall also include, to the extent possible, a
785	785	4 comparison of these learning gains to the statewide learning
786	786	5 gains of public school students with socioeconomic backgrounds
787	787	6 similar to those of students receiving scholarships. The
788	788	7 annual report shall be delivered to the Board and published on
789	789	8 its website.
790	790	9 (c) Beginning within 120 days after the Board first
791	791	10 receives the annual report by the independent research
792	792	11 organization as provided in subsection (b) of this Section and
793	793	12 on an annual basis thereafter, the Board shall submit a
794	794	13 written report to the Governor, the President of the Senate,
795	795	14 the Speaker of the House of Representatives, the Minority
796	796	15 Leader of the Senate, and the Minority Leader of the House of
797	797	16 Representatives regarding this Act. The report shall include
798	798	17 an evaluation of the academic performance of students
799	799	18 receiving scholarships and recommendations for improving
800	800	19 student performance.
801	801	20 (d) Subject to the State Officials and Employees Ethics
802	802	21 Act, the Board may receive and expend gifts, grants, and
803	803	22 donations of any kind from any public or private entity to
804	804	23 carry out the purposes of this Section, subject to the terms
805	805	24 and conditions under which the gifts are given, provided that
806	806	25 all such terms and conditions are permissible under law.
807	807	26 (e) The sharing and reporting of student learning gain
808	808
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811	811
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814	814
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818	818	1 data under this Section must be in accordance with
819	819	2 requirements of the federal Family Educational Rights and
820	820	3 Privacy Act and the Illinois School Student Records Act. All
821	821	4 parties must preserve the confidentiality of such information
822	822	5 as required by law. The annual report must not disaggregate
823	823	6 data to a level that will disclose the academic level of
824	824	7 individual students.
825	825	8 Section 50. Qualified school responsibilities. A qualified
826	826	9 school that accepts scholarship students must do all of the
827	827	10 following:
828	828	11 (1) provide to a scholarship granting organization,
829	829	12 upon request, all documentation required for the student's
830	830	13 participation, including the qualified school cost and
831	831	14 student's fee schedules;
832	832	15 (2) be academically accountable to the custodian for
833	833	16 meeting the educational needs of the student by:
834	834	17 (A) at a minimum, annually providing to the
835	835	18 custodian a written explanation of the student's
836	836	19 progress; and
837	837	20 (B) annually administering assessments required by
838	838	21 subsection (a) of Section 45 of this Act in the same
839	839	22 manner in which they are administered at public
840	840	23 schools under Section 2-3.64a-5 of the School Code;
841	841	24 the Board shall bill participating qualified schools
842	842	25 for all costs associated with administering
843	843
844	844
845	845
846	846
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849	849
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853	853	1 assessments required by this paragraph; the
854	854	2 participating qualified schools shall ensure that all
855	855	3 test security and assessment administration procedures
856	856	4 are followed; participating qualified schools must
857	857	5 report individual student scores to the custodians of
858	858	6 the students; the independent research organization
859	859	7 described in subsection (b) of Section 45 of this Act
860	860	8 shall be provided all student score data in a secure
861	861	9 manner by the participating qualified school.
862	862	10 The inability of a qualified school to meet the
863	863	11 requirements of this Section shall constitute a basis for
864	864	12 the ineligibility of the qualified school to participate
865	865	13 in the scholarship program as determined by the Board.
866	866	14 Section 55. Custodian and student responsibilities.
867	867	15 (a) The custodian must select a qualified school and apply
868	868	16 for the admission of his or her child.
869	869	17 (b) The custodian shall ensure that the student
870	870	18 participating in the scholarship program takes the assessment
871	871	19 required by subsection (a) of Section 45 of this Act.
872	872	20 (c) Each custodian and each student has an obligation to
873	873	21 comply with the published policies of the qualified school.
874	874	22 (d) The custodian shall authorize the scholarship granting
875	875	23 organization to access information needed for income
876	876	24 eligibility determinations.
877	877
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887	887	1 Section 60. Recordkeeping; rulemaking; violations.
888	888	2 (a) Each taxpayer shall, for each taxable year for which
889	889	3 the tax credit provided for under this Act is claimed,
890	890	4 maintain records of the following information: (i)
891	891	5 contribution authorization certificates obtained under Section
892	892	6 25 of this Act and (ii) certificates of receipt obtained under
893	893	7 Section 30 of this Act.
894	894	8 (b) The Board and the Department may adopt rules
895	895	9 consistent with and necessary for the implementation of this
896	896	10 Act.
897	897	11 (c) Violations of State laws or rules and complaints
898	898	12 relating to program participation shall be referred to the
899	899	13 Attorney General.
900	900	14 Section 65. Credit period; repeal. A taxpayer may take a
901	901	15 credit under this Act for tax years beginning on or after
902	902	16 January 1, 2025. This Act is exempt from the provisions of
903	903	17 Section 250 of the Illinois Income Tax Act.
904	904	18 Section 70. Inseverability. The provisions of this Act are
905	905	19 mutually dependent and inseverable. If any provision is held
906	906	20 invalid other than as applied to a particular person or
907	907	21 circumstance, then this entire Act is invalid.
908	908	22 Section 75. Saving clause. Any repeal or amendment made by
909	909	23 this Act shall not affect or impair any of the following: suits
910	910
911	911
912	912
913	913
914	914
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916	916
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920	920	1 pending or rights existing at the time this Act takes effect;
921	921	2 any grant or conveyance made or right acquired or cause of
922	922	3 action now existing under any Section, Article, or Act
923	923	4 repealed or amended by this Act; the validity of any bonds or
924	924	5 other obligations issued or sold and constituting valid
925	925	6 obligations of the issuing authority at the time this Act
926	926	7 takes effect; the validity of any contract; the validity of
927	927	8 any tax levied under any law in effect prior to the effective
928	928	9 date of this Act; or any offense committed, act done, penalty,
929	929	10 punishment, or forfeiture incurred or any claim, right, power,
930	930	11 or remedy accrued under any law in effect prior to the
931	931	12 effective date of this Act.
932	932	13 Section 900. The Illinois Income Tax Act is amended by
933	933	14 adding Section 241 as follows:
934	934	15 (35 ILCS 5/241 new)
935	935	16 Sec. 241. Investing in Tomorrow's Workforce Act.
936	936	17 (a) For taxable years beginning on or after January 1,
937	937	18 2025, each taxpayer for whom a tax credit has been awarded by
938	938	19 the Department under the Investing in Tomorrow's Workforce Act
939	939	20 is entitled to a credit against the tax imposed under
940	940	21 subsections (a) and (b) of Section 201 as provided in that Act.
941	941	22 (b) Partners and shareholders of subchapter S corporations
942	942	23 are entitled to a credit under this Section as provided in
943	943	24 Section 251.
944	944
945	945
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947	947
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954	954	1 (c) This Section is exempt from the provisions of Section
955	955	2 250.
956	956
957	957
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