Illinois 2025-2026 Regular Session

Illinois House Bill HB1729 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1729 Introduced , by Rep. Michael J. Coffey, Jr. SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/246 new Creates the Reinvest in Future Technical Careers Act. Provides that the Department of Revenue shall award income tax credits to taxpayers who make authorized contributions to scholarship granting organizations for the purpose of awarding scholarships to eligible students who attend technical academies. Sets forth limitations with respect to the aggregate amount of credits awarded by the Department of Revenue under the program in a calendar year and the amount of credits awarded to an individual taxpayer. Amends the Illinois Income Tax Act to make conforming changes. LRB104 08501 HLH 18553 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1729 Introduced , by Rep. Michael J. Coffey, Jr. SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/246 new New Act 35 ILCS 5/246 new Creates the Reinvest in Future Technical Careers Act. Provides that the Department of Revenue shall award income tax credits to taxpayers who make authorized contributions to scholarship granting organizations for the purpose of awarding scholarships to eligible students who attend technical academies. Sets forth limitations with respect to the aggregate amount of credits awarded by the Department of Revenue under the program in a calendar year and the amount of credits awarded to an individual taxpayer. Amends the Illinois Income Tax Act to make conforming changes. LRB104 08501 HLH 18553 b LRB104 08501 HLH 18553 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1729 Introduced , by Rep. Michael J. Coffey, Jr. SYNOPSIS AS INTRODUCED:
3	3	New Act35 ILCS 5/246 new New Act 35 ILCS 5/246 new
4	4	New Act
5	5	35 ILCS 5/246 new
6	6	Creates the Reinvest in Future Technical Careers Act. Provides that the Department of Revenue shall award income tax credits to taxpayers who make authorized contributions to scholarship granting organizations for the purpose of awarding scholarships to eligible students who attend technical academies. Sets forth limitations with respect to the aggregate amount of credits awarded by the Department of Revenue under the program in a calendar year and the amount of credits awarded to an individual taxpayer. Amends the Illinois Income Tax Act to make conforming changes.
7	7	LRB104 08501 HLH 18553 b LRB104 08501 HLH 18553 b
8	8	LRB104 08501 HLH 18553 b
9	9	A BILL FOR
10	10	HB1729LRB104 08501 HLH 18553 b HB1729 LRB104 08501 HLH 18553 b
11	11	HB1729 LRB104 08501 HLH 18553 b
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 Reinvest in Future Technical Careers 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 an Illinois resident who is a parent or
26	26	15 legal guardian of an eligible student or students.
27	27	16 "Department" means the Department of Revenue.
28	28	17 "Eligible student" means a child who:
29	29	18 (1) is a member of a household whose federal adjusted
30	30	19 gross income the year before he or she initially receives
31	31	20 a scholarship under this program, as determined by the
32	32	21 Department, does not exceed 300% of the federal poverty
33	33	22 level and, once the child receives a scholarship, does not
34	34	23 exceed 400% of the federal poverty level;
35	35
36	36
37	37
38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1729 Introduced , by Rep. Michael J. Coffey, Jr. SYNOPSIS AS INTRODUCED:
39	39	New Act35 ILCS 5/246 new New Act 35 ILCS 5/246 new
40	40	New Act
41	41	35 ILCS 5/246 new
42	42	Creates the Reinvest in Future Technical Careers Act. Provides that the Department of Revenue shall award income tax credits to taxpayers who make authorized contributions to scholarship granting organizations for the purpose of awarding scholarships to eligible students who attend technical academies. Sets forth limitations with respect to the aggregate amount of credits awarded by the Department of Revenue under the program in a calendar year and the amount of credits awarded to an individual taxpayer. Amends the Illinois Income Tax Act to make conforming changes.
43	43	LRB104 08501 HLH 18553 b LRB104 08501 HLH 18553 b
44	44	LRB104 08501 HLH 18553 b
45	45	A BILL FOR
46	46
47	47
48	48
49	49
50	50
51	51	New Act
52	52	35 ILCS 5/246 new
53	53
54	54
55	55
56	56	LRB104 08501 HLH 18553 b
57	57
58	58
59	59
60	60
61	61
62	62
63	63
64	64
65	65
66	66	HB1729 LRB104 08501 HLH 18553 b
67	67
68	68
69	69	HB1729- 2 -LRB104 08501 HLH 18553 b HB1729 - 2 - LRB104 08501 HLH 18553 b
70	70	HB1729 - 2 - LRB104 08501 HLH 18553 b
71	71	1 (2) is eligible to attend a public elementary school
72	72	2 or high school in Illinois in the semester immediately
73	73	3 preceding the semester for which he or she first receives
74	74	4 a scholarship or is starting school in Illinois for the
75	75	5 first time when he or she first receives a scholarship;
76	76	6 and
77	77	7 (3) resides in Illinois while receiving a scholarship.
78	78	8 "Family member" means a parent, child, or sibling, whether
79	79	9 by whole blood, half blood, or adoption; spouse; or stepchild.
80	80	10 "Focus district" means a school district that has a school
81	81	11 that either (i) has one or more subgroups in which the average
82	82	12 student performance is at or below the State average for the
83	83	13 lowest 10% of student performance in that subgroup or (ii) has
84	84	14 an average graduation rate of less than 60% and is not
85	85	15 identified for priority.
86	86	16 "Jointly administered CTE program" means a program or set
87	87	17 of programs within a non-public school located in Illinois, as
88	88	18 determined by the State Board of Education pursuant to Section
89	89	19 10 of this Act.
90	90	20 "Necessary costs and fees" means the customary charge for
91	91	21 instruction and use of facilities in general and the
92	92	22 additional fixed fees charged for specified purposes that are
93	93	23 required generally of non-scholarship recipients for each
94	94	24 academic period for which the scholarship applicant actually
95	95	25 enrolls, including costs associated with student assessments,
96	96	26 but not including fees payable only once and other contingent
97	97
98	98
99	99
100	100
101	101
102	102	HB1729 - 2 - LRB104 08501 HLH 18553 b
103	103
104	104
105	105	HB1729- 3 -LRB104 08501 HLH 18553 b HB1729 - 3 - LRB104 08501 HLH 18553 b
106	106	HB1729 - 3 - LRB104 08501 HLH 18553 b
107	107	1 deposits that are refundable in whole or in part. The Board may
108	108	2 prescribe, by rules consistent with this Act, detailed
109	109	3 provisions concerning the computation of necessary costs and
110	110	4 fees.
111	111	5 "Scholarship granting organization" means an entity that:
112	112	6 (1) is exempt from taxation under Section 501(c)(3) of
113	113	7 the Internal Revenue Code;
114	114	8 (2) uses at least 95% of the qualified contributions
115	115	9 received during a taxable year for scholarships;
116	116	10 (3) provides scholarships to students according to the
117	117	11 guidelines of this Act;
118	118	12 (4) deposits and holds qualified contributions and any
119	119	13 income derived from qualified contributions in an account
120	120	14 that is separate from the organization's operating fund or
121	121	15 other funds until those qualified contributions or income
122	122	16 are withdrawn for use; and
123	123	17 (5) is approved to issue certificates of receipt.
124	124	18 "Technical academy" means a non-public school located in
125	125	19 Illinois that (i) registers with the Board pursuant to Section
126	126	20 2-3.25o of the School Code and (ii) operates or will operate a
127	127	21 jointly administered CTE program as the primary focus of the
128	128	22 school. To maintain its status as a technical academy, the
129	129	23 non-public school must obtain recognition from the Board
130	130	24 pursuant to Section 2-3.25o of the School Code within 2
131	131	25 calendar years of its registration with the Board.
132	132	26 "Qualified contribution" means the authorized contribution
133	133
134	134
135	135
136	136
137	137
138	138	HB1729 - 3 - LRB104 08501 HLH 18553 b
139	139
140	140
141	141	HB1729- 4 -LRB104 08501 HLH 18553 b HB1729 - 4 - LRB104 08501 HLH 18553 b
142	142	HB1729 - 4 - LRB104 08501 HLH 18553 b
143	143	1 made by a taxpayer to a scholarship granting organization for
144	144	2 which the taxpayer has received a certificate of receipt from
145	145	3 the organization.
146	146	4 "Scholarship" means an educational scholarship awarded to
147	147	5 an eligible student to attend a technical academy of the
148	148	6 student's custodian's choice in an amount not exceeding the
149	149	7 necessary costs and fees to attend that technical academy.
150	150	8 "Taxpayer" means an individual, corporation, partnership,
151	151	9 trust, or other entity subject to the Illinois income tax. For
152	152	10 the purposes of this Act, 2 individuals filing a joint
153	153	11 Illinois income tax return shall be considered one taxpayer.
154	154	12 Section 10. Determination of jointly administered CTE
155	155	13 programs.
156	156	14 (a) Upon its own motion, or upon petition from a technical
157	157	15 academy, the State Board of Education shall determine whether
158	158	16 a program or set of programs offered or proposed by a technical
159	159	17 academy provides coursework and training in career and
160	160	18 technical education pathways aligned to industry-recognized
161	161	19 certifications and credentials. The State Board of Education
162	162	20 shall make that determination based upon whether the
163	163	21 industry-recognized certifications or credentials that are the
164	164	22 focus of a technical academy's coursework and training program
165	165	23 or set of programs (i) are associated with an occupation
166	166	24 determined to fall under the LEADING or EMERGING priority
167	167	25 sectors as determined through Illinois' Workforce Innovation
168	168
169	169
170	170
171	171
172	172
173	173	HB1729 - 4 - LRB104 08501 HLH 18553 b
174	174
175	175
176	176	HB1729- 5 -LRB104 08501 HLH 18553 b HB1729 - 5 - LRB104 08501 HLH 18553 b
177	177	HB1729 - 5 - LRB104 08501 HLH 18553 b
178	178	1 and Opportunity Act Unified State Plan and (ii) provide wages
179	179	2 that are at least 70% of the average annual wage in the State,
180	180	3 as determined by the United States Bureau of Labor Statistics.
181	181	4 (b) The State Board of Education shall publish a list of
182	182	5 approved jointly administered CTE programs on its website and
183	183	6 otherwise make that list available to the public. A technical
184	184	7 academy may petition the State Board of Education to obtain a
185	185	8 determination that a proposed program or set of programs that
186	186	9 it seeks to offer qualifies as a jointly administered CTE
187	187	10 program under subsection (a) of this Section. A petitioner
188	188	11 shall file one original petition in the form provided by the
189	189	12 State Board of Education and in the manner specified by the
190	190	13 State Board of Education. The petitioner may withdraw his or
191	191	14 her petition by submitting a written statement to the State
192	192	15 Board of Education indicating withdrawal. The State Board of
193	193	16 Education shall approve or deny a petition within 180 days of
194	194	17 its submission and, upon approval, shall proceed to add the
195	195	18 program or set of programs to the list of approved jointly
196	196	19 administered CTE programs. The approval or denial of any
197	197	20 petition is a final decision of the Board, subject to judicial
198	198	21 review under the Administrative Review Law. Jurisdiction and
199	199	22 venue are vested in the circuit court.
200	200	23 (c) The State Board of Education shall evaluate the
201	201	24 approved jointly administered CTE programs under this Section
202	202	25 once every 5 years. At this time, the State Board of Education
203	203	26 shall determine whether these programs continue to meet the
204	204
205	205
206	206
207	207
208	208
209	209	HB1729 - 5 - LRB104 08501 HLH 18553 b
210	210
211	211
212	212	HB1729- 6 -LRB104 08501 HLH 18553 b HB1729 - 6 - LRB104 08501 HLH 18553 b
213	213	HB1729 - 6 - LRB104 08501 HLH 18553 b
214	214	1 requirements set forth in subsection (a) of this Section.
215	215	2 Section 15. Credit awards.
216	216	3 (a) For taxable years beginning on or after January 1,
217	217	4 2026 and ending before January 1, 2037, the Department shall
218	218	5 award credits against the tax imposed under subsections (a)
219	219	6 and (b) of Section 201 of the Illinois Income Tax Act to
220	220	7 taxpayers who make qualified contributions. For contributions
221	221	8 made under this Act, the credit shall be equal to 75% of the
222	222	9 total amount of qualified contributions made by the taxpayer
223	223	10 during a taxable year.
224	224	11 (b) The aggregate amount of all credits the Department may
225	225	12 award under this Act in any calendar year may not exceed
226	226	13 $25,000,000.
227	227	14 (c) Contributions made by corporations (including
228	228	15 Subchapter S corporations), partnerships, and trusts under
229	229	16 this Act may not be directed to a particular subset of schools,
230	230	17 a particular school, a particular group of students, or a
231	231	18 particular student. Contributions made by individuals under
232	232	19 this Act may be directed to a particular subset of schools or a
233	233	20 particular school but may not be directed to a particular
234	234	21 group of students or a particular student.
235	235	22 (d) No credit shall be taken under this Act for any
236	236	23 qualified contribution for which the taxpayer claims a federal
237	237	24 income tax deduction.
238	238
239	239
240	240
241	241
242	242
243	243	HB1729 - 6 - LRB104 08501 HLH 18553 b
244	244
245	245
246	246	HB1729- 7 -LRB104 08501 HLH 18553 b HB1729 - 7 - LRB104 08501 HLH 18553 b
247	247	HB1729 - 7 - LRB104 08501 HLH 18553 b
248	248	1 Section 20. Approval to issue certificates of receipt.
249	249	2 (a) A scholarship granting organization shall submit an
250	250	3 application for approval to issue certificates of receipt in
251	251	4 the form and manner prescribed by the Department, provided
252	252	5 that each application shall include:
253	253	6 (1) documentary evidence that the scholarship granting
254	254	7 organization has been granted an exemption from taxation
255	255	8 under Section 501(c)(3) of the Internal Revenue Code;
256	256	9 (2) certification that all qualified contributions and
257	257	10 any income derived from qualified contributions are
258	258	11 deposited and held in an account that is separate from the
259	259	12 scholarship granting organization's operating or other
260	260	13 funds until such qualified contributions or income are
261	261	14 withdrawn for use;
262	262	15 (3) certification that the scholarship granting
263	263	16 organization will use at least 95% of its annual revenue
264	264	17 from qualified contributions for scholarships;
265	265	18 (4) certification that the scholarship granting
266	266	19 organization will provide scholarships to eligible
267	267	20 students;
268	268	21 (5) a list of the names and addresses of all members of
269	269	22 the governing board of the scholarship granting
270	270	23 organization; and
271	271	24 (6) a copy of the most recent financial audit of the
272	272	25 scholarship granting organization's accounts and records
273	273	26 conducted by an independent certified public accountant in
274	274
275	275
276	276
277	277
278	278
279	279	HB1729 - 7 - LRB104 08501 HLH 18553 b
280	280
281	281
282	282	HB1729- 8 -LRB104 08501 HLH 18553 b HB1729 - 8 - LRB104 08501 HLH 18553 b
283	283	HB1729 - 8 - LRB104 08501 HLH 18553 b
284	284	1 accordance with auditing standards generally accepted in
285	285	2 the United States, government auditing standards, and
286	286	3 rules adopted by the Department.
287	287	4 (b) A scholarship granting organization whose owner or
288	288	5 operator in the last 7 years has filed for personal bankruptcy
289	289	6 or corporate bankruptcy in a corporation of which he or she
290	290	7 owned more than 20% shall not be eligible to provide
291	291	8 scholarships.
292	292	9 (c) A scholarship granting organization must not have an
293	293	10 owner or operator who owns or operates a technical academy or
294	294	11 has a family member who is a paid staff or board member of a
295	295	12 participating technical academy.
296	296	13 (d) A scholarship granting organization shall comply with
297	297	14 the anti-discrimination provisions of 42 U.S.C. 2000d.
298	298	15 (e) The Department shall review and either approve or deny
299	299	16 each application to issue certificates of receipt pursuant to
300	300	17 this Act. Approval or denial of an application shall be made on
301	301	18 a periodic basis. Applicants shall be notified of the
302	302	19 Department's determination within 30 business days after the
303	303	20 application is received.
304	304	21 (f) No scholarship granting organization shall issue any
305	305	22 certificates of receipt without first being approved to issue
306	306	23 certificates of receipt.
307	307	24 Section 25. Annual review.
308	308	25 (a) Each scholarship granting organization that receives
309	309
310	310
311	311
312	312
313	313
314	314	HB1729 - 8 - LRB104 08501 HLH 18553 b
315	315
316	316
317	317	HB1729- 9 -LRB104 08501 HLH 18553 b HB1729 - 9 - LRB104 08501 HLH 18553 b
318	318	HB1729 - 9 - LRB104 08501 HLH 18553 b
319	319	1 approval to issue certificates of receipt shall file an
320	320	2 application for recertification on an annual basis. The
321	321	3 application for recertification shall be in the form and
322	322	4 manner prescribed by the Department and shall include:
323	323	5 (1) certification from the Director or Chief Executive
324	324	6 Officer of the organization that the organization has
325	325	7 complied with and continues to comply with the
326	326	8 requirements of this Act, including evidence of that
327	327	9 compliance; and
328	328	10 (2) a copy of the organization's current financial
329	329	11 statements.
330	330	12 (b) The Department may revoke the approval of a
331	331	13 scholarship granting organization to issue certificates of
332	332	14 receipt upon a finding that the organization has violated this
333	333	15 Act or any rules adopted under this Act. These violations
334	334	16 shall include, but need not be limited to, any of the
335	335	17 following:
336	336	18 (1) failure to meet the requirements of this Act;
337	337	19 (2) failure to maintain full and adequate records with
338	338	20 respect to the receipt of qualified contributions;
339	339	21 (3) failure to supply those records to the Department;
340	340	22 or
341	341	23 (4) failure to provide notice to the Department of the
342	342	24 issuance of certificates of receipt as required under this
343	343	25 Act.
344	344	26 (c) Within 5 days after the Department makes a
345	345
346	346
347	347
348	348
349	349
350	350	HB1729 - 9 - LRB104 08501 HLH 18553 b
351	351
352	352
353	353	HB1729- 10 -LRB104 08501 HLH 18553 b HB1729 - 10 - LRB104 08501 HLH 18553 b
354	354	HB1729 - 10 - LRB104 08501 HLH 18553 b
355	355	1 determination to revoke the approval of a scholarship granting
356	356	2 organization to issue certificates of receipt, the Department
357	357	3 shall provide the scholarship granting organization with
358	358	4 notice of the determination as well as information regarding
359	359	5 the process by which the organization may request a hearing to
360	360	6 appeal the determination.
361	361	7 Section 30. Contribution authorization certificates.
362	362	8 (a) A taxpayer shall not be allowed a credit pursuant to
363	363	9 this Act for any contribution to a scholarship granting
364	364	10 organization that was made prior to the Department's issuance
365	365	11 of a contribution authorization certificate for that
366	366	12 contribution to the taxpayer.
367	367	13 (b) Prior to making a contribution to a scholarship
368	368	14 granting organization, the taxpayer shall apply to the
369	369	15 Department for a contribution authorization certificate.
370	370	16 (c) A taxpayer who makes more than one contribution to a
371	371	17 scholarship granting organization must make a separate
372	372	18 application for each such contribution authorization
373	373	19 certificate. The application shall be in the form and manner
374	374	20 prescribed by the Department, provided that the application
375	375	21 shall include:
376	376	22 (1) the taxpayer's name and address;
377	377	23 (2) the amount the taxpayer will contribute; and
378	378	24 (3) any other information the Department deems
379	379	25 necessary.
380	380
381	381
382	382
383	383
384	384
385	385	HB1729 - 10 - LRB104 08501 HLH 18553 b
386	386
387	387
388	388	HB1729- 11 -LRB104 08501 HLH 18553 b HB1729 - 11 - LRB104 08501 HLH 18553 b
389	389	HB1729 - 11 - LRB104 08501 HLH 18553 b
390	390	1 (d) The Department may allow taxpayers to make multiple
391	391	2 applications on the same form, provided that each application
392	392	3 shall be treated as a separate application.
393	393	4 (e) The Department shall issue credit authorization
394	394	5 certificates on a first-come, first-served basis based upon
395	395	6 the date that the Department received the taxpayer's
396	396	7 application for the certificate.
397	397	8 (f) A taxpayer's aggregate authorized contribution amount
398	398	9 as listed on one or more authorized contribution certificates
399	399	10 issued to the taxpayer shall not exceed the aggregate of the
400	400	11 amounts listed on the taxpayer's applications submitted in
401	401	12 accordance with this Section.
402	402	13 (g) Each contribution authorization certificate shall
403	403	14 state:
404	404	15 (1) the date on which the certificate was issued;
405	405	16 (2) the date by which the authorized contributions
406	406	17 listed in the certificate must be made, which shall be 60
407	407	18 days from the date of the issuance of a credit
408	408	19 authorization certificate;
409	409	20 (3) the total amount of authorized contributions; and
410	410	21 (4) any other information the Department deems
411	411	22 necessary.
412	412	23 (h) Credit authorization certificates shall be mailed to
413	413	24 the appropriate taxpayers within 3 business days after their
414	414	25 issuance.
415	415	26 (i) A taxpayer may rescind all or part of an authorized
416	416
417	417
418	418
419	419
420	420
421	421	HB1729 - 11 - LRB104 08501 HLH 18553 b
422	422
423	423
424	424	HB1729- 12 -LRB104 08501 HLH 18553 b HB1729 - 12 - LRB104 08501 HLH 18553 b
425	425	HB1729 - 12 - LRB104 08501 HLH 18553 b
426	426	1 contribution approved under this Act by providing written
427	427	2 notice to the Department. Amounts rescinded shall no longer be
428	428	3 deducted from the cap prescribed in Section 15 of this Act.
429	429	4 (j) The Department shall maintain on its website a running
430	430	5 total of the amount of credits for which taxpayers may make
431	431	6 applications for contribution authorization certification. The
432	432	7 running total shall be updated every business day.
433	433	8 Section 35. Certificates of receipt.
434	434	9 (a) No scholarship granting organization shall issue a
435	435	10 certificate of receipt for any qualified contribution made by
436	436	11 a taxpayer under this Act unless that scholarship granting
437	437	12 organization has been approved to issue certificates of
438	438	13 receipt under this Act.
439	439	14 (b) No scholarship granting organization shall issue a
440	440	15 certificate of receipt for a contribution made by a taxpayer
441	441	16 unless the taxpayer has been issued a credit authorization
442	442	17 certificate by the Department.
443	443	18 (c) If a taxpayer makes a contribution to a scholarship
444	444	19 granting organization prior to the date by which the
445	445	20 authorized contribution shall be made, the scholarship
446	446	21 granting organization shall, within 30 days of receipt of the
447	447	22 authorized contribution, issue to the taxpayer a written
448	448	23 certificate of receipt.
449	449	24 (d) If a taxpayer fails to make all or a portion of a
450	450	25 contribution prior to the date by which such authorized
451	451
452	452
453	453
454	454
455	455
456	456	HB1729 - 12 - LRB104 08501 HLH 18553 b
457	457
458	458
459	459	HB1729- 13 -LRB104 08501 HLH 18553 b HB1729 - 13 - LRB104 08501 HLH 18553 b
460	460	HB1729 - 13 - LRB104 08501 HLH 18553 b
461	461	1 contribution is required to be made, the taxpayer shall not be
462	462	2 entitled to a certificate of receipt for that portion of the
463	463	3 authorized contribution not made.
464	464	4 (e) Each certificate of receipt shall state:
465	465	5 (1) the name and address of the issuing scholarship
466	466	6 granting organization;
467	467	7 (2) the taxpayer's name and address;
468	468	8 (3) the date for each qualified contribution;
469	469	9 (4) the amount of each qualified contribution;
470	470	10 (5) the total qualified contribution amount; and
471	471	11 (6) any other information that the Department may deem
472	472	12 necessary.
473	473	13 (f) Upon the issuance of a certificate of receipt, the
474	474	14 issuing scholarship granting organization shall, within 10
475	475	15 days after issuing the certificate of receipt, provide the
476	476	16 Department with notification of the issuance of such
477	477	17 certificate in the form and manner prescribed by the
478	478	18 Department, provided that such notification shall include:
479	479	19 (1) the taxpayer's name and address;
480	480	20 (2) the date of the issuance of a certificate of
481	481	21 receipt;
482	482	22 (3) the qualified contribution date or dates and the
483	483	23 amounts contributed on such dates;
484	484	24 (4) the total qualified contribution listed on such
485	485	25 certificates;
486	486	26 (5) the issuing scholarship granting organization's
487	487
488	488
489	489
490	490
491	491
492	492	HB1729 - 13 - LRB104 08501 HLH 18553 b
493	493
494	494
495	495	HB1729- 14 -LRB104 08501 HLH 18553 b HB1729 - 14 - LRB104 08501 HLH 18553 b
496	496	HB1729 - 14 - LRB104 08501 HLH 18553 b
497	497	1 name and address; and
498	498	2 (6) any other information the Department may deem
499	499	3 necessary.
500	500	4 (g) Any portion of a contribution that a taxpayer fails to
501	501	5 make by the date indicated on the authorized contribution
502	502	6 certificate shall no longer be deducted from the cap
503	503	7 prescribed in Section 15 of this Act.
504	504	8 Section 40. Reports.
505	505	9 (a) Within 180 days after the end of its fiscal year, each
506	506	10 scholarship granting organization must provide to the
507	507	11 Department a copy of a financial audit of its accounts and
508	508	12 records conducted by an independent certified public
509	509	13 accountant in accordance with auditing standards generally
510	510	14 accepted in the United States, government auditing standards,
511	511	15 and rules adopted by the Department. The audit must include a
512	512	16 report on financial statements presented in accordance with
513	513	17 generally accepted accounting principles. The audit must
514	514	18 include evidence that no less than 95% of qualified
515	515	19 contributions received were used to provide scholarships to
516	516	20 eligible students. The Department shall review all audits
517	517	21 submitted pursuant to this subsection. The Department shall
518	518	22 request any significant items that were omitted in violation
519	519	23 of a rule adopted by the Department. The items must be provided
520	520	24 within 45 days after the date of request. If a scholarship
521	521	25 granting organization does not comply with the Department's
522	522
523	523
524	524
525	525
526	526
527	527	HB1729 - 14 - LRB104 08501 HLH 18553 b
528	528
529	529
530	530	HB1729- 15 -LRB104 08501 HLH 18553 b HB1729 - 15 - LRB104 08501 HLH 18553 b
531	531	HB1729 - 15 - LRB104 08501 HLH 18553 b
532	532	1 request, the Department may revoke the scholarship granting
533	533	2 organization's ability to issue certificates of receipt.
534	534	3 (b) A scholarship granting organization that is approved
535	535	4 to receive qualified contributions shall report to the
536	536	5 Department, on a form prescribed by the Department, by January
537	537	6 31 of each calendar year. The report shall include:
538	538	7 (1) the total number of certificates of receipt issued
539	539	8 during the immediately preceding calendar year;
540	540	9 (2) the total dollar amount of qualified contributions
541	541	10 received, as set forth in the certificates of receipt
542	542	11 issued during the immediately preceding calendar year;
543	543	12 (3) the total number of eligible students using
544	544	13 scholarships for the immediately preceding calendar year
545	545	14 and the school year in progress and the total dollar value
546	546	15 of the scholarships;
547	547	16 (4) the name and address of each technical academy for
548	548	17 which scholarships using qualified contributions were
549	549	18 issued during the immediately preceding calendar year,
550	550	19 detailing the number, grade, race, gender, income level,
551	551	20 and residency by Zip Code of eligible students and the
552	552	21 total dollar value of scholarships being used at each
553	553	22 technical academy by priority group, as identified in
554	554	23 subsection (d) of Section 45 of this Act; and
555	555	24 (5) any additional information requested by the
556	556	25 Department.
557	557	26 (c) On or before the last day of March for each calendar
558	558
559	559
560	560
561	561
562	562
563	563	HB1729 - 15 - LRB104 08501 HLH 18553 b
564	564
565	565
566	566	HB1729- 16 -LRB104 08501 HLH 18553 b HB1729 - 16 - LRB104 08501 HLH 18553 b
567	567	HB1729 - 16 - LRB104 08501 HLH 18553 b
568	568	1 year, for the immediately preceding calendar year, the
569	569	2 Department shall submit a written report to the Governor, the
570	570	3 President of the Senate, the Speaker of the House of
571	571	4 Representatives, the Minority Leader of the Senate, and the
572	572	5 Minority Leader of the House of Representatives regarding this
573	573	6 Act. The report shall include, but not be limited to, the
574	574	7 following information:
575	575	8 (1) the names and addresses of all scholarship
576	576	9 granting organizations approved to issue certificates of
577	577	10 receipt;
578	578	11 (2) the number and aggregate total of certificates of
579	579	12 receipt issued by each scholarship granting organization;
580	580	13 and
581	581	14 (3) the information reported to the Department
582	582	15 required by subsection (b) of this Section.
583	583	16 (d) The sharing and reporting of student data under this
584	584	17 Section must be in accordance with the requirements of the
585	585	18 Family Educational Rights and Privacy Act and the Illinois
586	586	19 School Student Records Act. All parties must preserve the
587	587	20 confidentiality of such information as required by law. Data
588	588	21 reported by the Department under subsection (c) of this
589	589	22 Section must not disaggregate data to a level that will
590	590	23 disclose demographic data of individual students.
591	591	24 Section 45. Scholarship granting organization
592	592	25 responsibilities.
593	593
594	594
595	595
596	596
597	597
598	598	HB1729 - 16 - LRB104 08501 HLH 18553 b
599	599
600	600
601	601	HB1729- 17 -LRB104 08501 HLH 18553 b HB1729 - 17 - LRB104 08501 HLH 18553 b
602	602	HB1729 - 17 - LRB104 08501 HLH 18553 b
603	603	1 (a) Before granting a scholarship for an academic year,
604	604	2 all scholarship granting organizations shall assess and
605	605	3 document each student's eligibility for the academic year.
606	606	4 (b) A scholarship granting organization shall grant
607	607	5 scholarships only to eligible students.
608	608	6 (c) A scholarship granting organization shall give
609	609	7 priority to eligible students who received a scholarship from
610	610	8 a scholarship granting organization under this Act or under
611	611	9 the Invest in Kids Act during the previous school year. Second
612	612	10 priority shall be given to the following priority groups:
613	613	11 (1) eligible students who are members of a household
614	614	12 whose previous year's total annual income does not exceed
615	615	13 185% of the federal poverty level;
616	616	14 (2) eligible students who reside within a focus
617	617	15 district; and
618	618	16 (3) eligible students who are siblings of students
619	619	17 currently receiving a scholarship.
620	620	18 (d) A scholarship granting organization shall begin
621	621	19 granting scholarships no later than February 1 preceding the
622	622	20 school year for which the scholarship is sought. Each priority
623	623	21 group identified in subsection (c) of this Section shall be
624	624	22 eligible to receive scholarships on a first-come, first-served
625	625	23 basis until April 1 immediately preceding the school year for
626	626	24 which the scholarship is sought, starting with the first
627	627	25 priority group identified in subsection (c) of this Section.
628	628	26 Applications for scholarships for eligible students meeting
629	629
630	630
631	631
632	632
633	633
634	634	HB1729 - 17 - LRB104 08501 HLH 18553 b
635	635
636	636
637	637	HB1729- 18 -LRB104 08501 HLH 18553 b HB1729 - 18 - LRB104 08501 HLH 18553 b
638	638	HB1729 - 18 - LRB104 08501 HLH 18553 b
639	639	1 the qualifications of one or more priority groups that are
640	640	2 received before April 1 must be either approved or denied
641	641	3 within 10 business days after receipt. Beginning April 1, all
642	642	4 eligible students shall be eligible to receive scholarships
643	643	5 without regard to the priority groups identified in subsection
644	644	6 (c) of this Section.
645	645	7 (e) Except as provided in subsection (e-5) of this
646	646	8 Section, scholarships shall not exceed the lesser of (i) the
647	647	9 statewide average operational expense per student among public
648	648	10 schools or (ii) the necessary costs and fees for attendance at
649	649	11 the technical academy. A technical academy may set a lower
650	650	12 maximum scholarship amount for eligible students who are
651	651	13 members of a household whose previous year's total annual
652	652	14 income does not exceed 185% of the federal poverty level; that
653	653	15 amount may not exceed the necessary costs and fees for
654	654	16 attendance at the technical academy. The technical academy
655	655	17 shall notify the scholarship granting organization of its
656	656	18 necessary costs and fees as well as any maximum scholarship
657	657	19 amount set by the school. Scholarships shall be prorated as
658	658	20 follows:
659	659	21 (1) for eligible students whose household income is
660	660	22 less than 185% of the federal poverty level, the
661	661	23 scholarship shall be 100% of the amount determined
662	662	24 pursuant to this subsection (e) and subsection (e-5) of
663	663	25 this Section;
664	664	26 (2) for eligible students whose household income is
665	665
666	666
667	667
668	668
669	669
670	670	HB1729 - 18 - LRB104 08501 HLH 18553 b
671	671
672	672
673	673	HB1729- 19 -LRB104 08501 HLH 18553 b HB1729 - 19 - LRB104 08501 HLH 18553 b
674	674	HB1729 - 19 - LRB104 08501 HLH 18553 b
675	675	1 185% or more of the federal poverty level but less than
676	676	2 250% of the federal poverty level, the average of
677	677	3 scholarships shall be 75% of the amount determined
678	678	4 pursuant to this subsection (e) and subsection (e-5) of
679	679	5 this Section; and
680	680	6 (3) for eligible students whose household income is
681	681	7 250% or more of the federal poverty level, the average of
682	682	8 scholarships shall be 50% of the amount determined
683	683	9 pursuant to this subsection (e) and subsection (e-5) of
684	684	10 this Section.
685	685	11 (e-5) The statewide average operational expense per
686	686	12 student among public schools shall be multiplied by the
687	687	13 following factors:
688	688	14 (1) for students who are determined eligible to
689	689	15 receive services under the federal Individuals with
690	690	16 Disabilities Education Act, 2;
691	691	17 (2) for students who are English learners, as defined
692	692	18 in subsection (d) of Section 14C-2 of the School Code,
693	693	19 1.2; and
694	694	20 (3) for students who are gifted and talented children,
695	695	21 as defined in Section 14A-20 of the School Code, 1.1.
696	696	22 (f) A scholarship granting organization shall distribute
697	697	23 scholarship payments to the technical academy where the
698	698	24 student is enrolled.
699	699	25 (g) For the 2026-2027 school year through the 2035-2036
700	700	26 school year, each scholarship granting organization shall
701	701
702	702
703	703
704	704
705	705
706	706	HB1729 - 19 - LRB104 08501 HLH 18553 b
707	707
708	708
709	709	HB1729- 20 -LRB104 08501 HLH 18553 b HB1729 - 20 - LRB104 08501 HLH 18553 b
710	710	HB1729 - 20 - LRB104 08501 HLH 18553 b
711	711	1 expend no less than 75% of the qualified contributions
712	712	2 received during the calendar year in which the qualified
713	713	3 contributions were received. No more than 25% of the qualified
714	714	4 contributions may be carried forward to the following calendar
715	715	5 year.
716	716	6 (h) For the 2036-2037 school year, each scholarship
717	717	7 granting organization shall expend all qualified contributions
718	718	8 received during the calendar year in which the qualified
719	719	9 contributions were received. No qualified contributions may be
720	720	10 carried forward to the following calendar year.
721	721	11 (i) A scholarship granting organization shall allow an
722	722	12 eligible student to transfer a scholarship during a school
723	723	13 year to any other technical academy of the custodian's choice.
724	724	14 Those scholarships shall be prorated.
725	725	15 (j) With the prior approval of the Department, a
726	726	16 scholarship granting organization may transfer funds to
727	727	17 another scholarship granting organization if additional funds
728	728	18 are required to meet scholarship demands at the receiving
729	729	19 scholarship granting organization. All transferred funds must
730	730	20 be deposited by the receiving scholarship granting
731	731	21 organization into its scholarship accounts. All transferred
732	732	22 amounts received by any scholarship granting organization must
733	733	23 be separately disclosed to the Department.
734	734	24 (k) If the approval of a scholarship granting organization
735	735	25 is revoked as provided in Section 25 of this Act or the
736	736	26 scholarship granting organization is dissolved, all remaining
737	737
738	738
739	739
740	740
741	741
742	742	HB1729 - 20 - LRB104 08501 HLH 18553 b
743	743
744	744
745	745	HB1729- 21 -LRB104 08501 HLH 18553 b HB1729 - 21 - LRB104 08501 HLH 18553 b
746	746	HB1729 - 21 - LRB104 08501 HLH 18553 b
747	747	1 qualified contributions of the scholarship granting
748	748	2 organization shall be transferred to another scholarship
749	749	3 granting organization. All transferred funds must be deposited
750	750	4 by the receiving scholarship granting organization into its
751	751	5 scholarship accounts.
752	752	6 (l) Scholarship granting organizations shall make
753	753	7 reasonable efforts to advertise the availability of
754	754	8 scholarships to eligible students.
755	755	9 Section 50. State Board responsibilities.
756	756	10 (a) Students who have been granted a scholarship under
757	757	11 this Act shall be annually assessed at the technical academy
758	758	12 where the student attends school in the same manner in which
759	759	13 students that attend public schools are annually assessed
760	760	14 pursuant to Section 2-3.64a-5 of the School Code. The
761	761	15 technical academy shall pay costs associated with this
762	762	16 requirement.
763	763	17 (b) The Board shall select an independent research
764	764	18 organization, which may be a public or private entity or
765	765	19 university, to which participating technical academies must
766	766	20 report the scores of students who are receiving scholarships
767	767	21 and are assessed pursuant to subsection (a) of this Section.
768	768	22 Costs associated with the independent research organization
769	769	23 shall be paid by the scholarship granting organizations on a
770	770	24 per-pupil basis or by gifts, grants, or donations received by
771	771	25 the Board under subsection (d) of this Section, as determined
772	772
773	773
774	774
775	775
776	776
777	777	HB1729 - 21 - LRB104 08501 HLH 18553 b
778	778
779	779
780	780	HB1729- 22 -LRB104 08501 HLH 18553 b HB1729 - 22 - LRB104 08501 HLH 18553 b
781	781	HB1729 - 22 - LRB104 08501 HLH 18553 b
782	782	1 by the Board. The independent research organization must
783	783	2 annually report to the Board on the year-to-year learning
784	784	3 gains of students receiving scholarships on a statewide basis.
785	785	4 The report shall also include, to the extent possible, a
786	786	5 comparison of these learning gains to the statewide learning
787	787	6 gains of public school students with socioeconomic backgrounds
788	788	7 similar to those of students receiving scholarships. The
789	789	8 annual report shall be delivered to the Board and published on
790	790	9 its website.
791	791	10 (c) Beginning within 120 days after the Board first
792	792	11 receives the annual report by the independent research
793	793	12 organization as provided in subsection (b) of this Section and
794	794	13 on an annual basis thereafter, the Board shall submit a
795	795	14 written report to the Governor, the President of the Senate,
796	796	15 the Speaker of the House of Representatives, the Minority
797	797	16 Leader of the Senate, and the Minority Leader of the House of
798	798	17 Representatives regarding this Act. Such report shall include
799	799	18 an evaluation of the academic performance of students
800	800	19 receiving scholarships and recommendations for improving
801	801	20 student performance.
802	802	21 (d) Subject to the State Officials and Employees Ethics
803	803	22 Act, the Board may receive and expend gifts, grants, and
804	804	23 donations of any kind from any public or private entity to
805	805	24 carry out the purposes of this Section, subject to the terms
806	806	25 and conditions under which the gifts are given, provided that
807	807	26 all such terms and conditions are permissible under law.
808	808
809	809
810	810
811	811
812	812
813	813	HB1729 - 22 - LRB104 08501 HLH 18553 b
814	814
815	815
816	816	HB1729- 23 -LRB104 08501 HLH 18553 b HB1729 - 23 - LRB104 08501 HLH 18553 b
817	817	HB1729 - 23 - LRB104 08501 HLH 18553 b
818	818	1 (e) The sharing and reporting of student learning gain
819	819	2 data under this Section must be in accordance with
820	820	3 requirements of the Family Educational Rights and Privacy Act
821	821	4 and the Illinois School Student Records Act. All parties must
822	822	5 preserve the confidentiality of such information as required
823	823	6 by law. The annual report must not disaggregate data to a level
824	824	7 that will disclose the academic level of individual students.
825	825	8 Section 55. Technical academy responsibilities. A
826	826	9 technical academy that accepts scholarship students must do
827	827	10 all of the 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 non-public school's 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 50 of this Act in the same
839	839	22 manner in which they are administered at public
840	840	23 schools pursuant to Section 2-3.64a-5 of the School
841	841	24 Code; the Board shall bill participating technical
842	842	25 academies for all costs associated with administering
843	843
844	844
845	845
846	846
847	847
848	848	HB1729 - 23 - LRB104 08501 HLH 18553 b
849	849
850	850
851	851	HB1729- 24 -LRB104 08501 HLH 18553 b HB1729 - 24 - LRB104 08501 HLH 18553 b
852	852	HB1729 - 24 - LRB104 08501 HLH 18553 b
853	853	1 assessments required by this paragraph; the
854	854	2 participating technical academies shall ensure that
855	855	3 all test security and assessment administration
856	856	4 procedures are followed; participating technical
857	857	5 academies must report individual student scores to the
858	858	6 custodians of the students; the independent research
859	859	7 organization described in subsection (b) of Section 50
860	860	8 of this Act shall be provided all student score data in
861	861	9 a secure manner by the participating technical
862	862	10 academy.
863	863	11 The inability of a technical academy to meet the
864	864	12 requirements of this Section shall constitute a basis for the
865	865	13 ineligibility of the technical academy to participate in the
866	866	14 scholarship program as determined by the Board.
867	867	15 Section 60. Custodian and student responsibilities.
868	868	16 (a) The custodian must select a technical academy and
869	869	17 apply for the admission of his or her child.
870	870	18 (b) The custodian shall ensure that the student
871	871	19 participating in the scholarship program takes the assessment
872	872	20 required by subsection (a) of Section 50 of this Act.
873	873	21 (c) Each custodian and each student has an obligation to
874	874	22 comply with the technical academy's published policies.
875	875	23 (d) The custodian shall authorize the scholarship granting
876	876	24 organization to access information needed for income
877	877	25 eligibility determinations.
878	878
879	879
880	880
881	881
882	882
883	883	HB1729 - 24 - LRB104 08501 HLH 18553 b
884	884
885	885
886	886	HB1729- 25 -LRB104 08501 HLH 18553 b HB1729 - 25 - LRB104 08501 HLH 18553 b
887	887	HB1729 - 25 - LRB104 08501 HLH 18553 b
888	888	1 Section 65. Recordkeeping; rulemaking; violations.
889	889	2 (a) Each taxpayer shall, for each taxable year for which
890	890	3 the tax credit provided for under this Act is claimed,
891	891	4 maintain records of the following information: (i)
892	892	5 contribution authorization certificates obtained under Section
893	893	6 25 of this Act and (ii) certificates of receipt obtained under
894	894	7 Section 30 of this Act.
895	895	8 (b) The Board and the Department may adopt rules
896	896	9 consistent with and necessary for the implementation of this
897	897	10 Act.
898	898	11 (c) Violations of State laws or rules and complaints
899	899	12 relating to program participation shall be referred to the
900	900	13 Attorney General.
901	901	14 Section 70. Repeal. This Act is repealed on January 1,
902	902	15 2038.
903	903	16 Section 900. The Illinois Income Tax Act is amended by
904	904	17 adding Section 246 as follows:
905	905	18 (35 ILCS 5/246 new)
906	906	19 Sec. 246. Reinvest in Future Technical Careers Act.
907	907	20 (a) For taxable years beginning on or after January 1,
908	908	21 2026 and ending before January 1, 2037, each taxpayer for whom
909	909	22 a tax credit has been awarded by the Department under the
910	910
911	911
912	912
913	913
914	914
915	915	HB1729 - 25 - LRB104 08501 HLH 18553 b
916	916
917	917
918	918	HB1729- 26 -LRB104 08501 HLH 18553 b HB1729 - 26 - LRB104 08501 HLH 18553 b
919	919	HB1729 - 26 - LRB104 08501 HLH 18553 b
920	920
921	921
922	922
923	923
924	924
925	925	HB1729 - 26 - LRB104 08501 HLH 18553 b