104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2776
 
Introduced 1/13/2026, by Sen. Patrick J. Joyce
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/246 new
    Amends the Illinois Income Tax Act. Provides that each taxpayer that makes a donation to an educational improvement organization for aviation during the taxable year may apply to the Department of Commerce and Economic Opportunity for an income tax credit in an amount not to exceed the amount of the taxpayer's donation that is used to provide scholarships for prospective pilots, airline and aerospace mechanics, and other aviation and aerospace professionals as part of a program that operates in this State. Requires educational improvement organizations for aviation to apply to the Department of Commerce and Economic Opportunity to be eligible to accept donations that qualify for the credit. Provides that the Department of Commerce and Economic Opportunity may award no more than $5,000,000 in credits under the program in any calendar year. Effective immediately.


LRB104 16444 HLH 29836 b

 
 
A BILL FOR
 
SB2776LRB104 16444 HLH 29836 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by 
5adding Section 246 as follows:
 
6    (35 ILCS 5/246 new)
7    Sec. 246. Credit for donations to educational improvement 
8organizations for aviation.
9    (a) For taxable years beginning on or after January 1, 
102027, each taxpayer that makes a donation to an educational 
11improvement organization for aviation during the taxable year 
12may apply to the Department of Commerce and Economic 
13Opportunity for a credit against the taxes imposed by 
14subsections (a) and (b) of Section 201 in an amount not to 
15exceed the amount of the taxpayer's donation that is used to 
16provide scholarships for prospective pilots, airline and 
17aerospace mechanics, and other aviation and aerospace 
18professionals as part of a program that operates in this 
19State. The Department of Commerce and Economic Opportunity may 
20award no more than $5,000,000 in credits under this Section in 
21any calendar year. 
22    (b) An educational improvement organization for aviation 
23must apply to the Department of Commerce and Economic 
 
 
SB2776- 2 -LRB104 16444 HLH 29836 b

1Opportunity to be eligible to accept donations that qualify 
2for a credit under this Section. An application submitted by 
3an educational improvement organization for aviation must 
4describe its educational program or programs in a form 
5prescribed by the Department of Commerce and Economic 
6Opportunity by rule. The Department of Commerce and Economic 
7Opportunity shall review and approve or disapprove the 
8application. 
9    (c) In no event shall a credit under this Section reduce 
10the taxpayer's liability to less than zero. If the amount of 
11the credit exceeds the taxpayer's tax liability for the year, 
12the excess may be carried forward and applied to the tax 
13liability of the 10 taxable years following the excess credit 
14year. The tax credit shall be applied to the earliest year for 
15which there is a tax liability. If there are credits for more 
16than one year that are available to offset a liability, the 
17earlier credit shall be applied first. 
18    (d) The Department of Commerce and Economic Opportunity, 
19in cooperation with the Department of Revenue, shall adopt 
20rules to implement and administer this Section. 
21    (e) This Section is exempt from the provisions of Section 
22250. 
 
23    Section 99. Effective date. This Act takes effect upon 
24becoming law.