HB4148 104TH GENERAL ASSEMBLY

LRB104 15730 LNS 28914 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4148

Introduced 10/15/2025, by Rep. Jed Davis

SYNOPSIS AS INTRODUCED:

105 ILCS 5/2-3.208 new

Amends the School Code. Provides that the General Assembly voluntarily elects the State to: (1) participate in the federal tax credit established under the federal One Big Beautiful Bill Act for individuals who make qualified contributions to scholarship granting organizations; and (2) identify scholarship granting organizations located in this State. Authorizes and empowers the State Board of Education to certify and submit a list of qualifying scholarship granting organizations to the Secretary of the Treasury of the United States in accordance with the federal One Big Beautiful Bill Act and its associated regulations. Provides that by January 1, 2027 and by every January 1 thereafter, the State Board shall submit to the Secretary of the Treasury of the United States and publish on the State Board's Internet website a list of scholarship granting organizations that meet the requirements of the federal One Big Beautiful Bill Act and are located in this State. Provides that the State Board and the Department of Revenue may adopt only those rules necessary to implement the provisions in a manner consistent with federal law and may not impose additional criteria, restrictions, or limitations beyond those required under federal statute or regulation. Requires the State Board and the Department of Revenue to publish annual reports on the use and impact of the list of scholarship granting organizations.

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. This Act may be referred to as the Educational Choice for Illinois Children Act.

Section 2. Findings. The General Assembly makes all of the following findings:

(1) Section 1 of Article X of the Illinois Constitution provides that "[a] fundamental goal of the People of the State is the educational development of all persons to the limits of their capacities.". However, the State has failed to meet this goal. According to the 2024 National Assessment of Educational Progress (NAEP), 62% of 4th graders in the State were below proficient in mathematics, and 68% of 8th graders in the State were below proficient in mathematics. In reading, 70% of 4th graders were below proficient, and 67% of 8th graders were below proficient.

(2) H.R. 1 of the 119th Congress, the One Big Beautiful Bill Act, was recently signed into law. It offers a federal tax credit of up to $1,700 for individuals who donate to scholarship granting organizations, thereby increasing funding for these organizations to help families pay for their children to attend the kindergarten through grade 12 school of their choice. The list of eligible educational expenses includes tuition, fees, tutoring, educational therapies, transportation, technology, and other expenses for children attending public schools, private schools, and home schools.

(3) Illinois experienced great success with its own tax credit program, the Invest in Kids Act, which was allowed to expire at the end of 2023. According to the Department of Revenue, over 40,940 scholarships were awarded during the time that the Invest in Kids Act was active. Failure to opt into the provisions of the One Big Beautiful Bill Act would place this State at a competitive disadvantage with surrounding states that are likely to opt into the school choice provisions of the One Big Beautiful Bill Act.

(4) The ability to choose where a child goes to school should not be a privilege reserved for the wealthy. Too many students are trapped in an educational learning environment that fails to meet their needs, and the financial burden of attending a different school is too often out of reach. Scholarships from scholarship granting organizations under the One Big Beautiful Bill Act can help alleviate this financial burden for families that could not otherwise afford private school and would result in no additional cost to the State.

(5) Participation in the federal tax credit shall come at no cost to the State.

(6) It is the purpose of this Act to support school choice in this State by directing the State Board of Education to develop a list of scholarship granting organizations to which qualified contributions may be made under Section 25F of the Internal Revenue Code.

Section 5. The School Code is amended by adding Section 2-3.208 as follows:

(105 ILCS 5/2-3.208 new)

Sec. 2-3.208. Federal-qualifying scholarships.

(a) Pursuant to Section 25F of the Internal Revenue Code, the General Assembly voluntarily elects the State to do each of the following:

(1) Participate in the federal tax credit established under Section 25F of the Internal Revenue Code for individuals who make qualified contributions to scholarship granting organizations.

(2) Identify scholarship granting organizations located in this State in accordance with this Section.

(b) The State Board of Education is authorized and empowered to certify and submit a list of qualifying scholarship granting organizations to the Secretary of the Treasury of the United States in accordance with Section 25F of the Internal Revenue Code and its associated regulations as provided in this Section.

(c) By January 1, 2027 and by every January 1 thereafter, the State Board shall submit to the Secretary of the Treasury of the United States and publish on the State Board's Internet website a list of scholarship granting organizations that meet the requirements of Section 25F of the Internal Revenue Code and are located in this State. As part of the submission, the State Board shall certify its authority to submit the list on behalf of the State and comply with any other requirements of Section 25F of the Internal Revenue Code, its associated regulations, or other applicable guidance issued by the Secretary of the Treasury of the United States.

(d) The State Board and the Department of Revenue may adopt only those rules necessary to implement this Section in a manner consistent with federal law and may not impose additional criteria, restrictions, or limitations beyond those required under federal statute or regulation.

(e) The State Board and the Department of Revenue shall publish annual reports on the use and impact of the list of scholarship granting organizations developed under this Section.