Illinois 2025-2026 Regular Session

Illinois House Bill HB2649 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 HB2649 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED: 35 ILCS 40/Act title35 ILCS 40/135 ILCS 40/535 ILCS 40/7.535 ILCS 40/1035 ILCS 40/1535 ILCS 40/2035 ILCS 40/2535 ILCS 40/3035 ILCS 40/3535 ILCS 40/4035 ILCS 40/4535 ILCS 40/5035 ILCS 40/5535 ILCS 40/6035 ILCS 40/6535 ILCS 40/70 new35 ILCS 5/224 Reenacts the Invest in Kids Act and makes the Act permanent. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately. LRB104 09659 HLH 19725 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2649 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED: 35 ILCS 40/Act title35 ILCS 40/135 ILCS 40/535 ILCS 40/7.535 ILCS 40/1035 ILCS 40/1535 ILCS 40/2035 ILCS 40/2535 ILCS 40/3035 ILCS 40/3535 ILCS 40/4035 ILCS 40/4535 ILCS 40/5035 ILCS 40/5535 ILCS 40/6035 ILCS 40/6535 ILCS 40/70 new35 ILCS 5/224 35 ILCS 40/Act title 35 ILCS 40/1 35 ILCS 40/5 35 ILCS 40/7.5 35 ILCS 40/10 35 ILCS 40/15 35 ILCS 40/20 35 ILCS 40/25 35 ILCS 40/30 35 ILCS 40/35 35 ILCS 40/40 35 ILCS 40/45 35 ILCS 40/50 35 ILCS 40/55 35 ILCS 40/60 35 ILCS 40/65 35 ILCS 40/70 new 35 ILCS 5/224 Reenacts the Invest in Kids Act and makes the Act permanent. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately. LRB104 09659 HLH 19725 b LRB104 09659 HLH 19725 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2649 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 40/Act title35 ILCS 40/135 ILCS 40/535 ILCS 40/7.535 ILCS 40/1035 ILCS 40/1535 ILCS 40/2035 ILCS 40/2535 ILCS 40/3035 ILCS 40/3535 ILCS 40/4035 ILCS 40/4535 ILCS 40/5035 ILCS 40/5535 ILCS 40/6035 ILCS 40/6535 ILCS 40/70 new35 ILCS 5/224 35 ILCS 40/Act title 35 ILCS 40/1 35 ILCS 40/5 35 ILCS 40/7.5 35 ILCS 40/10 35 ILCS 40/15 35 ILCS 40/20 35 ILCS 40/25 35 ILCS 40/30 35 ILCS 40/35 35 ILCS 40/40 35 ILCS 40/45 35 ILCS 40/50 35 ILCS 40/55 35 ILCS 40/60 35 ILCS 40/65 35 ILCS 40/70 new 35 ILCS 5/224
4	4	35 ILCS 40/Act title
5	5	35 ILCS 40/1
6	6	35 ILCS 40/5
7	7	35 ILCS 40/7.5
8	8	35 ILCS 40/10
9	9	35 ILCS 40/15
10	10	35 ILCS 40/20
11	11	35 ILCS 40/25
12	12	35 ILCS 40/30
13	13	35 ILCS 40/35
14	14	35 ILCS 40/40
15	15	35 ILCS 40/45
16	16	35 ILCS 40/50
17	17	35 ILCS 40/55
18	18	35 ILCS 40/60
19	19	35 ILCS 40/65
20	20	35 ILCS 40/70 new
21	21	35 ILCS 5/224
22	22	Reenacts the Invest in Kids Act and makes the Act permanent. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
23	23	LRB104 09659 HLH 19725 b LRB104 09659 HLH 19725 b
24	24	LRB104 09659 HLH 19725 b
25	25	A BILL FOR
26	26	HB2649LRB104 09659 HLH 19725 b HB2649 LRB104 09659 HLH 19725 b
27	27	HB2649 LRB104 09659 HLH 19725 b
28	28	1 AN ACT concerning revenue.
29	29	2 Be it enacted by the People of the State of Illinois,
30	30	3 represented in the General Assembly:
31	31	4 Section 5. The Invest in Kids Act is reenacted and amended
32	32	5 by changing Sections 40 and 65 and by adding Section 70 as
33	33	6 follows:
34	34	7 (35 ILCS 40/Act title)
35	35	8 An Act concerning education.
36	36	9 (35 ILCS 40/1)
37	37	10 (Section scheduled to be repealed on January 1, 2025)
38	38	11 Sec. 1. Short title. This Act may be cited as the Invest in
39	39	12 Kids Act.
40	40	13 (Source: P.A. 100-465, eff. 8-31-17.)
41	41	14 (35 ILCS 40/5)
42	42	15 (Section scheduled to be repealed on January 1, 2025)
43	43	16 Sec. 5. Definitions. As used in this Act:
44	44	17 "Authorized contribution" means the contribution amount
45	45	18 that is listed on the contribution authorization certificate
46	46	19 issued to the taxpayer.
47	47	20 "Board" means the State Board of Education.
48	48	21 "Contribution" means a donation made by the taxpayer
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52	52	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2649 Introduced , by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED:
53	53	35 ILCS 40/Act title35 ILCS 40/135 ILCS 40/535 ILCS 40/7.535 ILCS 40/1035 ILCS 40/1535 ILCS 40/2035 ILCS 40/2535 ILCS 40/3035 ILCS 40/3535 ILCS 40/4035 ILCS 40/4535 ILCS 40/5035 ILCS 40/5535 ILCS 40/6035 ILCS 40/6535 ILCS 40/70 new35 ILCS 5/224 35 ILCS 40/Act title 35 ILCS 40/1 35 ILCS 40/5 35 ILCS 40/7.5 35 ILCS 40/10 35 ILCS 40/15 35 ILCS 40/20 35 ILCS 40/25 35 ILCS 40/30 35 ILCS 40/35 35 ILCS 40/40 35 ILCS 40/45 35 ILCS 40/50 35 ILCS 40/55 35 ILCS 40/60 35 ILCS 40/65 35 ILCS 40/70 new 35 ILCS 5/224
54	54	35 ILCS 40/Act title
55	55	35 ILCS 40/1
56	56	35 ILCS 40/5
57	57	35 ILCS 40/7.5
58	58	35 ILCS 40/10
59	59	35 ILCS 40/15
60	60	35 ILCS 40/20
61	61	35 ILCS 40/25
62	62	35 ILCS 40/30
63	63	35 ILCS 40/35
64	64	35 ILCS 40/40
65	65	35 ILCS 40/45
66	66	35 ILCS 40/50
67	67	35 ILCS 40/55
68	68	35 ILCS 40/60
69	69	35 ILCS 40/65
70	70	35 ILCS 40/70 new
71	71	35 ILCS 5/224
72	72	Reenacts the Invest in Kids Act and makes the Act permanent. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
73	73	LRB104 09659 HLH 19725 b LRB104 09659 HLH 19725 b
74	74	LRB104 09659 HLH 19725 b
75	75	A BILL FOR
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81	81	35 ILCS 40/Act title
82	82	35 ILCS 40/1
83	83	35 ILCS 40/5
84	84	35 ILCS 40/7.5
85	85	35 ILCS 40/10
86	86	35 ILCS 40/15
87	87	35 ILCS 40/20
88	88	35 ILCS 40/25
89	89	35 ILCS 40/30
90	90	35 ILCS 40/35
91	91	35 ILCS 40/40
92	92	35 ILCS 40/45
93	93	35 ILCS 40/50
94	94	35 ILCS 40/55
95	95	35 ILCS 40/60
96	96	35 ILCS 40/65
97	97	35 ILCS 40/70 new
98	98	35 ILCS 5/224
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117	117	1 during the taxable year for providing scholarships as provided
118	118	2 in this Act.
119	119	3 "Custodian" means, with respect to eligible students, an
120	120	4 Illinois resident who is a parent or legal guardian of the
121	121	5 eligible student or students.
122	122	6 "Department" means the Department of Revenue.
123	123	7 "Eligible student" means a child who:
124	124	8 (1) is a member of a household whose federal adjusted
125	125	9 gross income the year before he or she initially receives
126	126	10 a scholarship under this program, as determined by the
127	127	11 Department, does not exceed 300% of the federal poverty
128	128	12 level and, once the child receives a scholarship, does not
129	129	13 exceed 400% of the federal poverty level;
130	130	14 (2) is eligible to attend a public elementary school
131	131	15 or high school in Illinois in the semester immediately
132	132	16 preceding the semester for which he or she first receives
133	133	17 a scholarship or is starting school in Illinois for the
134	134	18 first time when he or she first receives a scholarship;
135	135	19 and
136	136	20 (3) resides in Illinois while receiving a scholarship.
137	137	21 "Family member" means a parent, child, or sibling, whether
138	138	22 by whole blood, half blood, or adoption; spouse; or stepchild.
139	139	23 "Focus district" means a school district which has a
140	140	24 school that is either (i) a school that has one or more
141	141	25 subgroups in which the average student performance is at or
142	142	26 below the State average for the lowest 10% of student
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153	153	1 performance in that subgroup or (ii) a school with an average
154	154	2 graduation rate of less than 60% and not identified for
155	155	3 priority.
156	156	4 "Jointly administered CTE program" means a program or set
157	157	5 of programs within a non-public school located in Illinois, as
158	158	6 determined by the State Board of Education pursuant to Section
159	159	7 7.5 of this Act.
160	160	8 "Necessary costs and fees" includes the customary charge
161	161	9 for instruction and use of facilities in general and the
162	162	10 additional fixed fees charged for specified purposes that are
163	163	11 required generally of non-scholarship recipients for each
164	164	12 academic period for which the scholarship applicant actually
165	165	13 enrolls, including costs associated with student assessments,
166	166	14 but does not include fees payable only once and other
167	167	15 contingent deposits that are refundable in whole or in part.
168	168	16 The Board may prescribe, by rules consistent with this Act,
169	169	17 detailed provisions concerning the computation of necessary
170	170	18 costs and fees.
171	171	19 "Scholarship granting organization" means an entity that:
172	172	20 (1) is exempt from taxation under Section 501(c)(3) of
173	173	21 the Internal Revenue Code;
174	174	22 (2) uses at least 95% of the qualified contributions
175	175	23 received during a taxable year for scholarships;
176	176	24 (3) provides scholarships to students according to the
177	177	25 guidelines of this Act;
178	178	26 (4) deposits and holds qualified contributions and any
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189	189	1 income derived from qualified contributions in an account
190	190	2 that is separate from the organization's operating fund or
191	191	3 other funds until such qualified contributions or income
192	192	4 are withdrawn for use; and
193	193	5 (5) is approved to issue certificates of receipt.
194	194	6 "Technical academy" means a non-public school located in
195	195	7 Illinois that: (1) registers with the Board pursuant to
196	196	8 Section 2-3.25 of the School Code; and (2) operates or will
197	197	9 operate a jointly administered CTE program as the primary
198	198	10 focus of the school. To maintain its status as a technical
199	199	11 academy, the non-public school must obtain recognition from
200	200	12 the Board pursuant to Section 2-3.25o of the School Code
201	201	13 within 2 calendar years of its registration with the Board.
202	202	14 "Qualified contribution" means the authorized contribution
203	203	15 made by a taxpayer to a scholarship granting organization for
204	204	16 which the taxpayer has received a certificate of receipt from
205	205	17 such organization.
206	206	18 "Qualified school" means a non-public school located in
207	207	19 Illinois and recognized by the Board pursuant to Section
208	208	20 2-3.25o of the School Code.
209	209	21 "Scholarship" means an educational scholarship awarded to
210	210	22 an eligible student to attend a qualified school of their
211	211	23 custodians' choice in an amount not exceeding the necessary
212	212	24 costs and fees to attend that school.
213	213	25 "Taxpayer" means any individual, corporation, partnership,
214	214	26 trust, or other entity subject to the Illinois income tax. For
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225	225	1 the purposes of this Act, 2 individuals filing a joint return
226	226	2 shall be considered one taxpayer.
227	227	3 (Source: P.A. 102-16, eff. 6-17-21.)
228	228	4 (35 ILCS 40/7.5)
229	229	5 (Section scheduled to be repealed on January 1, 2025)
230	230	6 Sec. 7.5. Determination of jointly-administered CTE
231	231	7 programs.
232	232	8 (a) Upon its own motion, or upon petition from a qualified
233	233	9 school or technical academy, the State Board of Education
234	234	10 shall determine whether a program or set of programs offered
235	235	11 or proposed by a qualified school or technical academy
236	236	12 provides coursework and training in career and technical
237	237	13 education pathways aligned to industry-recognized
238	238	14 certifications and credentials. The State Board of Education
239	239	15 shall make that determination based upon whether the
240	240	16 industry-recognized certifications or credentials that are the
241	241	17 focus of a qualified school or technical academy's coursework
242	242	18 and training program or set of programs (i) are associated
243	243	19 with an occupation determined to fall under the LEADING or
244	244	20 EMERGING priority sectors as determined through Illinois'
245	245	21 Workforce Innovation and Opportunity Act Unified State Plan
246	246	22 and (ii) provide wages that are at least 70% of the average
247	247	23 annual wage in the State, as determined by the United States
248	248	24 Bureau of Labor Statistics.
249	249	25 (b) The State Board of Education shall publish a list of
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260	260	1 approved jointly administered CTE programs on its website and
261	261	2 otherwise make that list available to the public. A qualified
262	262	3 school or technical academy may petition the State Board of
263	263	4 Education to obtain a determination that a proposed program or
264	264	5 set of programs that it seeks to offer qualifies as a jointly
265	265	6 administered CTE program under subsection (a) of this Section.
266	266	7 A petitioner shall file one original petition in the form
267	267	8 provided by the State Board of Education and in the manner
268	268	9 specified by the State Board of Education. The petitioner may
269	269	10 withdraw his or her petition by submitting a written statement
270	270	11 to the State Board of Education indicating withdrawal. The
271	271	12 State Board of Education shall approve or deny a petition
272	272	13 within 180 days of its submission and, upon approval, shall
273	273	14 proceed to add the program or set of programs to the list of
274	274	15 approved jointly administered CTE programs. The approval or
275	275	16 denial of any petition is a final decision of the Board,
276	276	17 subject to judicial review under the Administrative Review
277	277	18 Law. Jurisdiction and venue are vested in the circuit court.
278	278	19 (c) The State Board of Education shall evaluate the
279	279	20 approved jointly administered CTE programs under this Section
280	280	21 once every 5 years. At this time, the State Board of Education
281	281	22 shall determine whether these programs continue to meet the
282	282	23 requirements set forth in subsection (a) of this Section.
283	283	24 (Source: P.A. 102-16, eff. 6-17-21.)
284	284	25 (35 ILCS 40/10)
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295	295	1 (Section scheduled to be repealed on January 1, 2025)
296	296	2 Sec. 10. Credit awards.
297	297	3 (a) The Department shall award credits against the tax
298	298	4 imposed under subsections (a) and (b) of Section 201 of the
299	299	5 Illinois Income Tax Act to taxpayers who make qualified
300	300	6 contributions. For contributions made under this Act, the
301	301	7 credit shall be equal to 75% of the total amount of qualified
302	302	8 contributions made by the taxpayer during a taxable year, not
303	303	9 to exceed a credit of $1,000,000 per taxpayer.
304	304	10 (b) The aggregate amount of all credits the Department may
305	305	11 award under this Act in any calendar year may not exceed
306	306	12 $75,000,000.
307	307	13 (c) Contributions made by corporations (including
308	308	14 Subchapter S corporations), partnerships, and trusts under
309	309	15 this Act may not be directed to a particular subset of schools,
310	310	16 a particular school, a particular group of students, or a
311	311	17 particular student. Contributions made by individuals under
312	312	18 this Act may be directed to a particular subset of schools or a
313	313	19 particular school but may not be directed to a particular
314	314	20 group of students or a particular student.
315	315	21 (d) No credit shall be taken under this Act for any
316	316	22 qualified contribution for which the taxpayer claims a federal
317	317	23 income tax deduction.
318	318	24 (e) Credits shall be awarded in a manner, as determined by
319	319	25 the Department, that is geographically proportionate to
320	320	26 enrollment in recognized non-public schools in Illinois. If
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331	331	1 the cap on the aggregate credits that may be awarded by the
332	332	2 Department is not reached by June 1 of a given year, the
333	333	3 Department shall award remaining credits on a first-come,
334	334	4 first-served basis, without regard to the limitation of this
335	335	5 subsection.
336	336	6 (f) Credits awarded for donations made to a technical
337	337	7 academy shall be awarded without regard to subsection (e), but
338	338	8 shall not exceed 15% of the annual statewide program cap. For
339	339	9 the purposes of this subsection, "technical academy" means a
340	340	10 technical academy that is registered with the Board within 30
341	341	11 days after the effective date of this amendatory Act of the
342	342	12 102nd General Assembly.
343	343	13 (Source: P.A. 102-16, eff. 6-17-21.)
344	344	14 (35 ILCS 40/15)
345	345	15 (Section scheduled to be repealed on January 1, 2025)
346	346	16 Sec. 15. Approval to issue certificates of receipt.
347	347	17 (a) A scholarship granting organization shall submit an
348	348	18 application for approval to issue certificates of receipt in
349	349	19 the form and manner prescribed by the Department, provided
350	350	20 that each application shall include:
351	351	21 (1) documentary evidence that the scholarship granting
352	352	22 organization has been granted an exemption from taxation
353	353	23 under Section 501(c)(3) of the Internal Revenue Code;
354	354	24 (2) certification that all qualified contributions and
355	355	25 any income derived from qualified contributions are
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366	366	1 deposited and held in an account that is separate from the
367	367	2 scholarship granting organization's operating or other
368	368	3 funds until such qualified contributions or income are
369	369	4 withdrawn for use;
370	370	5 (3) certification that the scholarship granting
371	371	6 organization will use at least 95% of its annual revenue
372	372	7 from qualified contributions for scholarships;
373	373	8 (4) certification that the scholarship granting
374	374	9 organization will provide scholarships to eligible
375	375	10 students;
376	376	11 (5) a list of the names and addresses of all members of
377	377	12 the governing board of the scholarship granting
378	378	13 organization; and
379	379	14 (6) a copy of the most recent financial audit of the
380	380	15 scholarship granting organization's accounts and records
381	381	16 conducted by an independent certified public accountant in
382	382	17 accordance with auditing standards generally accepted in
383	383	18 the United States, government auditing standards, and
384	384	19 rules adopted by the Department.
385	385	20 (b) A scholarship granting organization whose owner or
386	386	21 operator in the last 7 years has filed for personal bankruptcy
387	387	22 or corporate bankruptcy in a corporation of which he or she
388	388	23 owned more than 20% shall not be eligible to provide
389	389	24 scholarships.
390	390	25 (c) A scholarship granting organization must not have an
391	391	26 owner or operator who owns or operates a qualified school or
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402	402	1 has a family member who is a paid staff or board member of a
403	403	2 participating qualified school.
404	404	3 (d) A scholarship granting organization shall comply with
405	405	4 the anti-discrimination provisions of 42 U.S.C. 2000d.
406	406	5 (e) The Department shall review and either approve or deny
407	407	6 each application to issue certificates of receipt pursuant to
408	408	7 this Act. Approval or denial of an application shall be made on
409	409	8 a periodic basis. Applicants shall be notified of the
410	410	9 Department's determination within 30 business days after the
411	411	10 application is received.
412	412	11 (f) No scholarship granting organization shall issue any
413	413	12 certificates of receipt without first being approved to issue
414	414	13 certificates of receipt.
415	415	14 (Source: P.A. 100-465, eff. 8-31-17.)
416	416	15 (35 ILCS 40/20)
417	417	16 (Section scheduled to be repealed on January 1, 2025)
418	418	17 Sec. 20. Annual review.
419	419	18 (a) Each scholarship granting organization that receives
420	420	19 approval to issue certificates of receipt shall file an
421	421	20 application for recertification on an annual basis. Such
422	422	21 application for recertification shall be in the form and
423	423	22 manner prescribed by the Department and shall include:
424	424	23 (1) certification from the Director or Chief Executive
425	425	24 Officer of the organization that the organization has
426	426	25 complied with and continues to comply with the
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437	437	1 requirements of this Act, including evidence of that
438	438	2 compliance; and
439	439	3 (2) a copy of the organization's current financial
440	440	4 statements.
441	441	5 (b) The Department may revoke the approval of a
442	442	6 scholarship granting organization to issue certificates of
443	443	7 receipt upon a finding that the organization has violated this
444	444	8 Act or any rules adopted under this Act. These violations
445	445	9 shall include, but need not be limited to, any of the
446	446	10 following:
447	447	11 (1) failure to meet the requirements of this Act;
448	448	12 (2) failure to maintain full and adequate records with
449	449	13 respect to the receipt of qualified contributions;
450	450	14 (3) failure to supply such records to the Department;
451	451	15 or
452	452	16 (4) failure to provide notice to the Department of the
453	453	17 issuance of certificates of receipt pursuant to Section 35
454	454	18 of this Act.
455	455	19 (c) Within 5 days after the determination to revoke
456	456	20 approval, the Department shall provide notice of the
457	457	21 determination to the scholarship granting organization and
458	458	22 information regarding the process to request a hearing to
459	459	23 appeal the determination.
460	460	24 (Source: P.A. 100-465, eff. 8-31-17.)
461	461	25 (35 ILCS 40/25)
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472	472	1 (Section scheduled to be repealed on January 1, 2025)
473	473	2 Sec. 25. Contribution authorization certificates.
474	474	3 (a) A taxpayer shall not be allowed a credit pursuant to
475	475	4 this Act for any contribution to a scholarship granting
476	476	5 organization that was made prior to the Department's issuance
477	477	6 of a contribution authorization certificate for such
478	478	7 contribution to the taxpayer.
479	479	8 (b) Prior to making a contribution to a scholarship
480	480	9 granting organization, the taxpayer shall apply to the
481	481	10 Department for a contribution authorization certificate.
482	482	11 (c) A taxpayer who makes more than one contribution to a
483	483	12 scholarship granting organization must make a separate
484	484	13 application for each such contribution authorization
485	485	14 certificate. The application shall be in the form and manner
486	486	15 prescribed by the Department, provided that the application
487	487	16 includes:
488	488	17 (1) the taxpayer's name and address;
489	489	18 (2) the amount the taxpayer will contribute; and
490	490	19 (3) any other information the Department deems
491	491	20 necessary.
492	492	21 (d) The Department may allow taxpayers to make multiple
493	493	22 applications on the same form, provided that each application
494	494	23 shall be treated as a separate application.
495	495	24 (e) The Department shall issue credit authorization
496	496	25 certificates on a first-come, first-served basis based upon
497	497	26 the date that the Department received the taxpayer's
498	498
499	499
500	500
501	501
502	502
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504	504
505	505
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507	507	HB2649 - 13 - LRB104 09659 HLH 19725 b
508	508	1 application for the certificate subject to the provisions of
509	509	2 subsection (e) of Section 10 of this Act.
510	510	3 (f) A taxpayer's aggregate authorized contribution amount
511	511	4 as listed on one or more authorized contribution certificates
512	512	5 issued to the taxpayer shall not exceed the aggregate of the
513	513	6 amounts listed on the taxpayer's applications submitted in
514	514	7 accordance with this Section.
515	515	8 (g) Each contribution authorization certificate shall
516	516	9 state:
517	517	10 (1) the date such certificate was issued;
518	518	11 (2) the date by which the authorized contributions
519	519	12 listed in the certificate must be made, which shall be 60
520	520	13 days from the date of the issuance of a credit
521	521	14 authorization certificate;
522	522	15 (3) the total amount of authorized contributions; and
523	523	16 (4) any other information the Department deems
524	524	17 necessary.
525	525	18 (h) Credit authorization certificates shall be mailed to
526	526	19 the appropriate taxpayers within 3 business days after their
527	527	20 issuance.
528	528	21 (i) A taxpayer may rescind all or part of an authorized
529	529	22 contribution approved under this Act by providing written
530	530	23 notice to the Department. Amounts rescinded shall no longer be
531	531	24 deducted from the cap prescribed in Section 10 of this Act.
532	532	25 (j) The Department shall maintain on its website a running
533	533	26 total of the amount of credits for which taxpayers may make
534	534
535	535
536	536
537	537
538	538
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540	540
541	541
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543	543	HB2649 - 14 - LRB104 09659 HLH 19725 b
544	544	1 applications for contribution authorization certification. The
545	545	2 running total shall be updated every business day.
546	546	3 (Source: P.A. 100-465, eff. 8-31-17.)
547	547	4 (35 ILCS 40/30)
548	548	5 (Section scheduled to be repealed on January 1, 2025)
549	549	6 Sec. 30. Certificates of receipt.
550	550	7 (a) No scholarship granting organization shall issue a
551	551	8 certificate of receipt for any qualified contribution made by
552	552	9 a taxpayer under this Act unless that scholarship granting
553	553	10 organization has been approved to issue certificates of
554	554	11 receipt pursuant to Section 15 of this Act.
555	555	12 (b) No scholarship granting organization shall issue a
556	556	13 certificate of receipt for a contribution made by a taxpayer
557	557	14 unless the taxpayer has been issued a credit authorization
558	558	15 certificate by the Department.
559	559	16 (c) If a taxpayer makes a contribution to a scholarship
560	560	17 granting organization prior to the date by which the
561	561	18 authorized contribution shall be made, the scholarship
562	562	19 granting organization shall, within 30 days of receipt of the
563	563	20 authorized contribution, issue to the taxpayer a written
564	564	21 certificate of receipt.
565	565	22 (d) If a taxpayer fails to make all or a portion of a
566	566	23 contribution prior to the date by which such authorized
567	567	24 contribution is required to be made, the taxpayer shall not be
568	568	25 entitled to a certificate of receipt for that portion of the
569	569
570	570
571	571
572	572
573	573
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575	575
576	576
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578	578	HB2649 - 15 - LRB104 09659 HLH 19725 b
579	579	1 authorized contribution not made.
580	580	2 (e) Each certificate of receipt shall state:
581	581	3 (1) the name and address of the issuing scholarship
582	582	4 granting organization;
583	583	5 (2) the taxpayer's name and address;
584	584	6 (3) the date for each qualified contribution;
585	585	7 (4) the amount of each qualified contribution;
586	586	8 (5) the total qualified contribution amount; and
587	587	9 (6) any other information that the Department may deem
588	588	10 necessary.
589	589	11 (f) Upon the issuance of a certificate of receipt, the
590	590	12 issuing scholarship granting organization shall, within 10
591	591	13 days after issuing the certificate of receipt, provide the
592	592	14 Department with notification of the issuance of such
593	593	15 certificate in the form and manner prescribed by the
594	594	16 Department, provided that such notification shall include:
595	595	17 (1) the taxpayer's name and address;
596	596	18 (2) the date of the issuance of a certificate of
597	597	19 receipt;
598	598	20 (3) the qualified contribution date or dates and the
599	599	21 amounts contributed on such dates;
600	600	22 (4) the total qualified contribution listed on such
601	601	23 certificates;
602	602	24 (5) the issuing scholarship granting organization's
603	603	25 name and address; and
604	604	26 (6) any other information the Department may deem
605	605
606	606
607	607
608	608
609	609
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611	611
612	612
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614	614	HB2649 - 16 - LRB104 09659 HLH 19725 b
615	615	1 necessary.
616	616	2 (g) Any portion of a contribution that a taxpayer fails to
617	617	3 make by the date indicated on the authorized contribution
618	618	4 certificate shall no longer be deducted from the cap
619	619	5 prescribed in Section 10 of this Act.
620	620	6 (Source: P.A. 100-465, eff. 8-31-17.)
621	621	7 (35 ILCS 40/35)
622	622	8 (Section scheduled to be repealed on January 1, 2025)
623	623	9 Sec. 35. Reports.
624	624	10 (a) Within 180 days after the end of its fiscal year, each
625	625	11 scholarship granting organization must provide to the
626	626	12 Department a copy of a financial audit of its accounts and
627	627	13 records conducted by an independent certified public
628	628	14 accountant in accordance with auditing standards generally
629	629	15 accepted in the United States, government auditing standards,
630	630	16 and rules adopted by the Department. The audit must include a
631	631	17 report on financial statements presented in accordance with
632	632	18 generally accepted accounting principles. The audit must
633	633	19 include evidence that no less than 95% of qualified
634	634	20 contributions received were used to provide scholarships to
635	635	21 eligible students. The Department shall review all audits
636	636	22 submitted pursuant to this subsection. The Department shall
637	637	23 request any significant items that were omitted in violation
638	638	24 of a rule adopted by the Department. The items must be provided
639	639	25 within 45 days after the date of request. If a scholarship
640	640
641	641
642	642
643	643
644	644
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646	646
647	647
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649	649	HB2649 - 17 - LRB104 09659 HLH 19725 b
650	650	1 granting organization does not comply with the Department's
651	651	2 request, the Department may revoke the scholarship granting
652	652	3 organization's ability to issue certificates of receipt.
653	653	4 (b) A scholarship granting organization that is approved
654	654	5 to receive qualified contributions shall report to the
655	655	6 Department, on a form prescribed by the Department, by January
656	656	7 31 of each calendar year. The report shall include:
657	657	8 (1) the total number of certificates of receipt issued
658	658	9 during the immediately preceding calendar year;
659	659	10 (2) the total dollar amount of qualified contributions
660	660	11 received, as set forth in the certificates of receipt
661	661	12 issued during the immediately preceding calendar year;
662	662	13 (3) the total number of eligible students utilizing
663	663	14 scholarships for the immediately preceding calendar year
664	664	15 and the school year in progress and the total dollar value
665	665	16 of the scholarships;
666	666	17 (4) the name and address of each qualified school for
667	667	18 which scholarships using qualified contributions were
668	668	19 issued during the immediately preceding calendar year,
669	669	20 detailing the number, grade, race, gender, income level,
670	670	21 and residency by Zip Code of eligible students and the
671	671	22 total dollar value of scholarships being utilized at each
672	672	23 qualified school by priority group, as identified in
673	673	24 subsection (d) of Section 40 of this Act; and
674	674	25 (5) any additional information requested by the
675	675	26 Department.
676	676
677	677
678	678
679	679
680	680
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682	682
683	683
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685	685	HB2649 - 18 - LRB104 09659 HLH 19725 b
686	686	1 (c) On or before the last day of March for each calendar
687	687	2 year, for the immediately preceding calendar year, the
688	688	3 Department shall submit a written report to the Governor, the
689	689	4 President of the Senate, the Speaker of the House of
690	690	5 Representatives, the Minority Leader of the Senate, and the
691	691	6 Minority Leader of the House of Representatives regarding this
692	692	7 Act. The report shall include, but not be limited to, the
693	693	8 following information:
694	694	9 (1) the names and addresses of all scholarship
695	695	10 granting organizations approved to issue certificates of
696	696	11 receipt;
697	697	12 (2) the number and aggregate total of certificates of
698	698	13 receipt issued by each scholarship granting organization;
699	699	14 and
700	700	15 (3) the information reported to the Department
701	701	16 required by subsection (b) of this Section.
702	702	17 (d) The sharing and reporting of student data under this
703	703	18 Section must be in accordance with the requirements of the
704	704	19 Family Educational Rights and Privacy Act and the Illinois
705	705	20 School Student Records Act. All parties must preserve the
706	706	21 confidentiality of such information as required by law. Data
707	707	22 reported by the Department under subsection (c) of this
708	708	23 Section must not disaggregate data to a level that will
709	709	24 disclose demographic data of individual students.
710	710	25 (Source: P.A. 100-465, eff. 8-31-17.)
711	711
712	712
713	713
714	714
715	715
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717	717
718	718
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720	720	HB2649 - 19 - LRB104 09659 HLH 19725 b
721	721	1 (35 ILCS 40/40)
722	722	2 (Section scheduled to be repealed on January 1, 2025)
723	723	3 Sec. 40. Scholarship granting organization
724	724	4 responsibilities.
725	725	5 (a) Before granting a scholarship for an academic year,
726	726	6 all scholarship granting organizations shall assess and
727	727	7 document each student's eligibility for the academic year.
728	728	8 (b) A scholarship granting organization shall grant
729	729	9 scholarships only to eligible students.
730	730	10 (c) A scholarship granting organization shall allow an
731	731	11 eligible student to attend any qualified school of the
732	732	12 student's choosing, subject to the availability of funds.
733	733	13 (d) In granting scholarships, beginning in the 2022-2023
734	734	14 school year and for each school year thereafter, a scholarship
735	735	15 granting organization shall give priority to eligible students
736	736	16 who received a scholarship from a scholarship granting
737	737	17 organization during the previous school year. Second priority
738	738	18 shall be given to the following priority groups:
739	739	19 (1) (blank);
740	740	20 (2) eligible students who are members of a household
741	741	21 whose previous year's total annual income does not exceed
742	742	22 185% of the federal poverty level;
743	743	23 (3) eligible students who reside within a focus
744	744	24 district; and
745	745	25 (4) eligible students who are siblings of students
746	746	26 currently receiving a scholarship.
747	747
748	748
749	749
750	750
751	751
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753	753
754	754
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756	756	HB2649 - 20 - LRB104 09659 HLH 19725 b
757	757	1 (d-5) A scholarship granting organization shall begin
758	758	2 granting scholarships no later than February 1 preceding the
759	759	3 school year for which the scholarship is sought. Each priority
760	760	4 group identified in subsection (d) of this Section shall be
761	761	5 eligible to receive scholarships on a first-come, first-served
762	762	6 basis until April 1 immediately preceding the school year for
763	763	7 which the scholarship is sought, starting with the first
764	764	8 priority group identified in subsection (d) of this Section.
765	765	9 Applications for scholarships for eligible students meeting
766	766	10 the qualifications of one or more priority groups that are
767	767	11 received before April 1 must be either approved or denied
768	768	12 within 10 business days after receipt. Beginning April 1, all
769	769	13 eligible students shall be eligible to receive scholarships
770	770	14 without regard to the priority groups identified in subsection
771	771	15 (d) of this Section.
772	772	16 (e) Except as provided in subsection (e-5) of this
773	773	17 Section, scholarships shall not exceed the lesser of (i) the
774	774	18 statewide average operational expense per student among public
775	775	19 schools or (ii) the necessary costs and fees for attendance at
776	776	20 the qualified school. A qualified school may set a lower
777	777	21 maximum scholarship amount for eligible students whose family
778	778	22 income falls within paragraphs (2) and (3) of this subsection
779	779	23 (e); that amount may not exceed the necessary costs and fees
780	780	24 for attendance at the qualified school and is subject to the
781	781	25 limitations on average scholarship amounts set forth in
782	782	26 paragraphs (2) and (3) of this subsection, as applicable. The
783	783
784	784
785	785
786	786
787	787
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789	789
790	790
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792	792	HB2649 - 21 - LRB104 09659 HLH 19725 b
793	793	1 qualified school shall notify the scholarship granting
794	794	2 organization of its necessary costs and fees as well as any
795	795	3 maximum scholarship amount set by the school. Scholarships
796	796	4 shall be prorated as follows:
797	797	5 (1) for eligible students whose household income is
798	798	6 less than 185% of the federal poverty level, the
799	799	7 scholarship shall be 100% of the amount determined
800	800	8 pursuant to this subsection (e) and subsection (e-5) of
801	801	9 this Section;
802	802	10 (2) for eligible students whose household income is
803	803	11 185% or more of the federal poverty level but less than
804	804	12 250% of the federal poverty level, the average of
805	805	13 scholarships shall be 75% of the amount determined
806	806	14 pursuant to this subsection (e) and subsection (e-5) of
807	807	15 this Section; and
808	808	16 (3) for eligible students whose household income is
809	809	17 250% or more of the federal poverty level, the average of
810	810	18 scholarships shall be 50% of the amount determined
811	811	19 pursuant to this subsection (e) and subsection (e-5) of
812	812	20 this Section.
813	813	21 (e-5) The statewide average operational expense per
814	814	22 student among public schools shall be multiplied by the
815	815	23 following factors:
816	816	24 (1) for students determined eligible to receive
817	817	25 services under the federal Individuals with Disabilities
818	818	26 Education Act, 2;
819	819
820	820
821	821
822	822
823	823
824	824	HB2649 - 21 - LRB104 09659 HLH 19725 b
825	825
826	826
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828	828	HB2649 - 22 - LRB104 09659 HLH 19725 b
829	829	1 (2) for students who are English learners, as defined
830	830	2 in subsection (d) of Section 14C-2 of the School Code,
831	831	3 1.2; and
832	832	4 (3) for students who are gifted and talented children,
833	833	5 as defined in Section 14A-20 of the School Code, 1.1.
834	834	6 (f) A scholarship granting organization shall distribute
835	835	7 scholarship payments to the participating school where the
836	836	8 student is enrolled.
837	837	9 (g) For the 2018-2019 school year through the 2022-2023
838	838	10 school year, each scholarship granting organization shall
839	839	11 expend no less than 75% of the qualified contributions
840	840	12 received during the calendar year in which the qualified
841	841	13 contributions were received. No more than 25% of the qualified
842	842	14 contributions may be carried forward to the following calendar
843	843	15 year.
844	844	16 (h) For the 2023-2024 school year, each scholarship
845	845	17 granting organization shall expend all qualified contributions
846	846	18 received during the calendar year in which the qualified
847	847	19 contributions were received. No qualified contributions may be
848	848	20 carried forward to the following calendar year.
849	849	21 (h-1) For the 2024-2025 school year and all school years
850	850	22 following, each scholarship granting organization shall expend
851	851	23 no less than 75% of the qualified contributions received
852	852	24 during the calendar year in which the qualified contributions
853	853	25 were received. No more than 25% of the qualified contributions
854	854	26 may be carried forward to the following calendar year.
855	855
856	856
857	857
858	858
859	859
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861	861
862	862
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865	865	1 (i) A scholarship granting organization shall allow an
866	866	2 eligible student to transfer a scholarship during a school
867	867	3 year to any other participating school of the custodian's
868	868	4 choice. Such scholarships shall be prorated.
869	869	5 (j) With the prior approval of the Department, a
870	870	6 scholarship granting organization may transfer funds to
871	871	7 another scholarship granting organization if additional funds
872	872	8 are required to meet scholarship demands at the receiving
873	873	9 scholarship granting organization. All transferred funds must
874	874	10 be deposited by the receiving scholarship granting
875	875	11 organization into its scholarship accounts. All transferred
876	876	12 amounts received by any scholarship granting organization must
877	877	13 be separately disclosed to the Department.
878	878	14 (k) If the approval of a scholarship granting organization
879	879	15 is revoked as provided in Section 20 of this Act or the
880	880	16 scholarship granting organization is dissolved, all remaining
881	881	17 qualified contributions of the scholarship granting
882	882	18 organization shall be transferred to another scholarship
883	883	19 granting organization. All transferred funds must be deposited
884	884	20 by the receiving scholarship granting organization into its
885	885	21 scholarship accounts.
886	886	22 (l) Scholarship granting organizations shall make
887	887	23 reasonable efforts to advertise the availability of
888	888	24 scholarships to eligible students.
889	889	25 (Source: P.A. 102-699, eff. 4-19-22; 102-1059, eff. 6-10-22;
890	890	26 103-154, eff. 6-30-23.)
891	891
892	892
893	893
894	894
895	895
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897	897
898	898
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900	900	HB2649 - 24 - LRB104 09659 HLH 19725 b
901	901	1 (35 ILCS 40/45)
902	902	2 (Section scheduled to be repealed on January 1, 2025)
903	903	3 Sec. 45. State Board responsibilities.
904	904	4 (a) Beginning in the 2019-2020 school year, students who
905	905	5 have been granted a scholarship under this Act shall be
906	906	6 annually assessed at the qualified school where the student
907	907	7 attends school in the same manner in which students that
908	908	8 attend public schools are annually assessed pursuant to
909	909	9 Section 2-3.64a-5 of the School Code. Such qualified school
910	910	10 shall pay costs associated with this requirement.
911	911	11 (b) The Board shall select an independent research
912	912	12 organization, which may be a public or private entity or
913	913	13 university, to which participating qualified schools must
914	914	14 report the scores of students who are receiving scholarships
915	915	15 and are assessed pursuant to subsection (a) of this Section.
916	916	16 Costs associated with the independent research organization
917	917	17 shall be paid by the scholarship granting organizations on a
918	918	18 per-pupil basis or by gifts, grants, or donations received by
919	919	19 the Board under subsection (d) of this Section, as determined
920	920	20 by the Board. The independent research organization must
921	921	21 annually report to the Board on the year-to-year learning
922	922	22 gains of students receiving scholarships on a statewide basis.
923	923	23 The report shall also include, to the extent possible, a
924	924	24 comparison of these learning gains to the statewide learning
925	925	25 gains of public school students with socioeconomic backgrounds
926	926
927	927
928	928
929	929
930	930
931	931	HB2649 - 24 - LRB104 09659 HLH 19725 b
932	932
933	933
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935	935	HB2649 - 25 - LRB104 09659 HLH 19725 b
936	936	1 similar to those of students receiving scholarships. The
937	937	2 annual report shall be delivered to the Board and published on
938	938	3 its website.
939	939	4 (c) Beginning within 120 days after the Board first
940	940	5 receives the annual report by the independent research
941	941	6 organization as provided in subsection (b) of this Section and
942	942	7 on an annual basis thereafter, the Board shall submit a
943	943	8 written report to the Governor, the President of the Senate,
944	944	9 the Speaker of the House of Representatives, the Minority
945	945	10 Leader of the Senate, and the Minority Leader of the House of
946	946	11 Representatives regarding this Act. Such report shall include
947	947	12 an evaluation of the academic performance of students
948	948	13 receiving scholarships and recommendations for improving
949	949	14 student performance.
950	950	15 (d) Subject to the State Officials and Employees Ethics
951	951	16 Act, the Board may receive and expend gifts, grants, and
952	952	17 donations of any kind from any public or private entity to
953	953	18 carry out the purposes of this Section, subject to the terms
954	954	19 and conditions under which the gifts are given, provided that
955	955	20 all such terms and conditions are permissible under law.
956	956	21 (e) The sharing and reporting of student learning gain
957	957	22 data under this Section must be in accordance with
958	958	23 requirements of the Family Educational Rights and Privacy Act
959	959	24 and the Illinois School Student Records Act. All parties must
960	960	25 preserve the confidentiality of such information as required
961	961	26 by law. The annual report must not disaggregate data to a level
962	962
963	963
964	964
965	965
966	966
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968	968
969	969
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971	971	HB2649 - 26 - LRB104 09659 HLH 19725 b
972	972	1 that will disclose the academic level of individual students.
973	973	2 (Source: P.A. 100-465, eff. 8-31-17.)
974	974	3 (35 ILCS 40/50)
975	975	4 (Section scheduled to be repealed on January 1, 2025)
976	976	5 Sec. 50. Qualified school responsibilities. A qualified
977	977	6 school that accepts scholarship students must do all of the
978	978	7 following:
979	979	8 (1) provide to a scholarship granting organization,
980	980	9 upon request, all documentation required for the student's
981	981	10 participation, including the non-public school's cost and
982	982	11 student's fee schedules;
983	983	12 (2) be academically accountable to the custodian for
984	984	13 meeting the educational needs of the student by:
985	985	14 (A) at a minimum, annually providing to the
986	986	15 custodian a written explanation of the student's
987	987	16 progress; and
988	988	17 (B) annually administering assessments required by
989	989	18 subsection (a) of Section 45 of this Act in the same
990	990	19 manner in which they are administered at public
991	991	20 schools pursuant to Section 2-3.64a-5 of the School
992	992	21 Code; the Board shall bill participating qualified
993	993	22 schools for all costs associated with administering
994	994	23 assessments required by this paragraph; the
995	995	24 participating qualified schools shall ensure that all
996	996	25 test security and assessment administration procedures
997	997
998	998
999	999
1000	1000
1001	1001
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1003	1003
1004	1004
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1007	1007	1 are followed; participating qualified schools must
1008	1008	2 report individual student scores to the custodians of
1009	1009	3 the students; the independent research organization
1010	1010	4 described in subsection (b) of Section 45 of this Act
1011	1011	5 shall be provided all student score data in a secure
1012	1012	6 manner by the participating qualified school.
1013	1013	7 The inability of a qualified school to meet the
1014	1014	8 requirements of this Section shall constitute a basis for the
1015	1015	9 ineligibility of the qualified school to participate in the
1016	1016	10 scholarship program as determined by the Board.
1017	1017	11 (Source: P.A. 100-465, eff. 8-31-17.)
1018	1018	12 (35 ILCS 40/55)
1019	1019	13 (Section scheduled to be repealed on January 1, 2025)
1020	1020	14 Sec. 55. Custodian and student responsibilities.
1021	1021	15 (a) The custodian must select a qualified school and apply
1022	1022	16 for the admission of his or her child.
1023	1023	17 (b) The custodian shall ensure that the student
1024	1024	18 participating in the scholarship program takes the assessment
1025	1025	19 required by subsection (a) of Section 45 of this Act.
1026	1026	20 (c) Each custodian and each student has an obligation to
1027	1027	21 comply with the qualified school's published policies.
1028	1028	22 (d) The custodian shall authorize the scholarship granting
1029	1029	23 organization to access information needed for income
1030	1030	24 eligibility determinations.
1031	1031	25 (Source: P.A. 100-465, eff. 8-31-17.)
1032	1032
1033	1033
1034	1034
1035	1035
1036	1036
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1038	1038
1039	1039
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1042	1042	1 (35 ILCS 40/60)
1043	1043	2 (Section scheduled to be repealed on January 1, 2025)
1044	1044	3 Sec. 60. Recordkeeping; rulemaking; violations.
1045	1045	4 (a) Each taxpayer shall, for each taxable year for which
1046	1046	5 the tax credit provided for under this Act is claimed,
1047	1047	6 maintain records of the following information: (i)
1048	1048	7 contribution authorization certificates obtained under Section
1049	1049	8 25 of this Act and (ii) certificates of receipt obtained under
1050	1050	9 Section 30 of this Act.
1051	1051	10 (b) The Board and the Department may adopt rules
1052	1052	11 consistent with and necessary for the implementation of this
1053	1053	12 Act.
1054	1054	13 (c) Violations of State laws or rules and complaints
1055	1055	14 relating to program participation shall be referred to the
1056	1056	15 Attorney General.
1057	1057	16 (Source: P.A. 100-465, eff. 8-31-17.)
1058	1058	17 (35 ILCS 40/65)
1059	1059	18 (Section scheduled to be repealed on January 1, 2025)
1060	1060	19 Sec. 65. Credit period; repeal.
1061	1061	20 (a) A taxpayer may take a credit under this Act (i) for tax
1062	1062	21 years beginning on or after January 1, 2018 and ending before
1063	1063	22 January 1, 2024 and (ii) for tax years beginning on or after
1064	1064	23 January 1, 2025. A taxpayer may not take a credit pursuant to
1065	1065	24 this Act for tax years beginning on or after January 1, 2024.
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
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1072	1072
1073	1073
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1075	1075	HB2649 - 29 - LRB104 09659 HLH 19725 b
1076	1076	1 (b) This Act is exempt from the provisions of Section 250
1077	1077	2 of the Illinois Income Tax Act. This Act is repealed on January
1078	1078	3 1, 2025.
1079	1079	4 (Source: P.A. 102-16, eff. 6-17-21.)
1080	1080	5 (35 ILCS 40/70 new)
1081	1081	6 Sec. 70. Continuation of Act; validation.
1082	1082	7 (a) This amendatory Act of the 104th General Assembly
1083	1083	8 manifests the intention of the General Assembly to extend the
1084	1084	9 repeal of the Invest in Kids Act and have the Invest in Kids
1085	1085	10 Act continue in effect on and after January 1, 2025.
1086	1086	11 (b) The Invest in Kids Act shall be deemed to have been in
1087	1087	12 continuous effect since August 31, 2017 (the effective date of
1088	1088	13 Public Act 100-465), and it shall continue to be in effect
1089	1089	14 until it is otherwise lawfully repealed. All previously
1090	1090	15 enacted amendments to the Invest in Kids Act Act taking effect
1091	1091	16 on or after January 1, 2025, are hereby validated.
1092	1092	17 (c) All actions taken in reliance on or pursuant to the
1093	1093	18 Invest in Kids Act by any person or entity are hereby
1094	1094	19 validated.
1095	1095	20 (d) In order to ensure the continuing effectiveness of the
1096	1096	21 Invest in Kids Act, it is set forth in full and reenacted by
1097	1097	22 this amendatory Act of the 104th General Assembly. Striking
1098	1098	23 and underscoring are used only to show changes being made to
1099	1099	24 the base text. This reenactment is intended as a continuation
1100	1100	25 of the Act. It is not intended to supersede any amendment to
1101	1101
1102	1102
1103	1103
1104	1104
1105	1105
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1107	1107
1108	1108
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1111	1111	1 the Act that is enacted by the 104th General Assembly.
1112	1112	2 Section 10. The Illinois Income Tax Act is amended by
1113	1113	3 changing Section 224 as follows:
1114	1114	4 (35 ILCS 5/224)
1115	1115	5 Sec. 224. Invest in Kids credit.
1116	1116	6 (a) For (i) taxable years beginning on or after January 1,
1117	1117	7 2018 and ending before January 1, 2024 and (ii) taxable years
1118	1118	8 beginning on or after January 1, 2025, each taxpayer for whom a
1119	1119	9 tax credit has been awarded by the Department under the Invest
1120	1120	10 in Kids Act is entitled to a credit against the tax imposed
1121	1121	11 under subsections (a) and (b) of Section 201 of this Act in an
1122	1122	12 amount equal to the amount awarded under the Invest in Kids
1123	1123	13 Act.
1124	1124	14 (b) For taxable years ending before December 31, 2023, for
1125	1125	15 partners, shareholders of subchapter S corporations, and
1126	1126	16 owners of limited liability companies, if the liability
1127	1127	17 company is treated as a partnership for purposes of federal
1128	1128	18 and State income taxation, the credit under this Section shall
1129	1129	19 be determined in accordance with the determination of income
1130	1130	20 and distributive share of income under Sections 702 and 704
1131	1131	21 and subchapter S of the Internal Revenue Code. For taxable
1132	1132	22 years ending on or after December 31, 2023, partners and
1133	1133	23 shareholders of subchapter S corporations are entitled to a
1134	1134	24 credit under this Section as provided in Section 251.
1135	1135
1136	1136
1137	1137
1138	1138
1139	1139
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1141	1141
1142	1142
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1145	1145	1 (c) The credit may not be carried back and may not reduce
1146	1146	2 the taxpayer's liability to less than zero. If the amount of
1147	1147	3 the credit exceeds the tax liability for the year, the excess
1148	1148	4 may be carried forward and applied to the tax liability of the
1149	1149	5 5 taxable years following the excess credit year. The tax
1150	1150	6 credit shall be applied to the earliest year for which there is
1151	1151	7 a tax liability. If there are credits for more than one year
1152	1152	8 that are available to offset the liability, the earlier credit
1153	1153	9 shall be applied first.
1154	1154	10 (d) A tax credit awarded by the Department under the
1155	1155	11 Invest in Kids Act may not be claimed for any qualified
1156	1156	12 contribution for which the taxpayer claims a federal income
1157	1157	13 tax deduction.
1158	1158	14 (e) This Section is exempt from the provisions of Section
1159	1159	15 250.
1160	1160	16 (Source: P.A. 102-699, eff. 4-19-22; 103-396, eff. 1-1-24.)
1161	1161
1162	1162
1163	1163
1164	1164
1165	1165
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