Illinois General Assembly - Full Text of SB4181
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Full Text of SB4181  102nd General Assembly

SB4181 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4181

 

Introduced 2/23/2022, by Sen. Jil Tracy

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224
35 ILCS 40/40
35 ILCS 40/65

    Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2023). Makes a formatting change to create a first priority group for eligible students who received a scholarship from a scholarship granting organization during the previous school year. Provides that qualified schools may establish a maximum scholarship amount, which may not exceed the necessary costs and fees for attendance at the qualified school. Provides that the qualified school shall notify the scholarship granting organization of its necessary costs and fees as well as any maximum scholarship amount set by the school. Effective immediately.


LRB102 26377 HLH 36584 b

 

 

A BILL FOR

 

SB4181LRB102 26377 HLH 36584 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
5changing Section 224 as follows:
 
6    (35 ILCS 5/224)
7    Sec. 224. Invest in Kids credit.
8    (a) For taxable years beginning on or after January 1,
92018 and ending before January 1, 2023, each taxpayer for whom
10a tax credit has been awarded by the Department under the
11Invest in Kids Act is entitled to a credit against the tax
12imposed under subsections (a) and (b) of Section 201 of this
13Act in an amount equal to the amount awarded under the Invest
14in Kids Act.
15    (b) For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if
17the liability company is treated as a partnership for purposes
18of federal and State income taxation, the credit under this
19Section shall be determined in accordance with the
20determination of income and distributive share of income under
21Sections 702 and 704 and subchapter S of the Internal Revenue
22Code.
23    (c) The credit may not be carried back and may not reduce

 

 

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1the taxpayer's liability to less than zero. If the amount of
2the credit exceeds the tax liability for the year, the excess
3may be carried forward and applied to the tax liability of the
45 taxable years following the excess credit year. The tax
5credit shall be applied to the earliest year for which there is
6a tax liability. If there are credits for more than one year
7that are available to offset the liability, the earlier credit
8shall be applied first.
9    (d) A tax credit awarded by the Department under the
10Invest in Kids Act may not be claimed for any qualified
11contribution for which the taxpayer claims a federal income
12tax deduction.
13    (e) This Section is exempt from the provisions of Section
14250.
15(Source: P.A. 100-465, eff. 8-31-17.)
 
16    Section 10. The Invest in Kids Act is amended by changing
17Sections 40 and 65 as follows:
 
18    (35 ILCS 40/40)
19    (Section scheduled to be repealed on January 1, 2025)
20    Sec. 40. Scholarship granting organization
21responsibilities.
22    (a) Before granting a scholarship for an academic year,
23all scholarship granting organizations shall assess and
24document each student's eligibility for the academic year.

 

 

SB4181- 3 -LRB102 26377 HLH 36584 b

1    (b) A scholarship granting organization shall grant
2scholarships only to eligible students.
3    (c) A scholarship granting organization shall allow an
4eligible student to attend any qualified school of the
5student's choosing, subject to the availability of funds.
6    (d) In granting scholarships, beginning in the 2022-2023
7school year and for each school year thereafter, a scholarship
8granting organization shall give priority to eligible students
9who received a scholarship from a scholarship granting
10organization during the previous school year. Second priority
11shall be given to the following priority groups:
12        (1) (blank); eligible students who received a
13    scholarship from a scholarship granting organization
14    during the previous school year;
15        (2) eligible students who are members of a household
16    whose previous year's total annual income does not exceed
17    185% of the federal poverty level;
18        (3) eligible students who reside within a focus
19    district; and
20        (4) eligible students who are siblings of students
21    currently receiving a scholarship.
22    (d-5) A scholarship granting organization shall begin
23granting scholarships no later than February 1 preceding the
24school year for which the scholarship is sought. Each The
25priority group groups identified in subsection (d) of this
26Section shall be eligible to receive scholarships on a

 

 

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1first-come, first-served basis until the April 1 immediately
2preceding the school year for which the scholarship is sought
3starting with the first priority group identified in
4subsection (d) of this Section. Applications for scholarships
5for eligible students meeting the qualifications of one or
6more priority groups that are received before April 1 must be
7either approved or denied within 10 business days after
8receipt. Beginning April 1, all eligible students shall be
9eligible to receive scholarships without regard to the
10priority groups identified in subsection (d) of this Section.
11    (e) Except as provided in subsection (e-5) of this
12Section, scholarships shall not exceed the lesser of: (i) the
13statewide average operational expense per student among public
14schools; or (ii) the necessary costs and fees for attendance
15at the qualified school; or (iii) the maximum scholarship
16amount set by the qualified school, if the qualified school
17chooses to set such an amount, which may not exceed the
18necessary costs and fees for attendance at the qualified
19school. The qualified school shall notify the scholarship
20granting organization of its necessary costs and fees as well
21as any maximum scholarship amount set by the school.
22Scholarships shall be prorated as follows:
23        (1) for eligible students whose household income is
24    less than 185% of the federal poverty level, the
25    scholarship shall be 100% of the amount determined
26    pursuant to this subsection (e) and subsection (e-5) of

 

 

SB4181- 5 -LRB102 26377 HLH 36584 b

1    this Section;
2        (2) for eligible students whose household income is
3    185% or more of the federal poverty level but less than
4    250% of the federal poverty level, the average of
5    scholarships shall be 75% of the amount determined
6    pursuant to this subsection (e) and subsection (e-5) of
7    this Section; and
8        (3) for eligible students whose household income is
9    250% or more of the federal poverty level, the average of
10    scholarships shall be 50% of the amount determined
11    pursuant to this subsection (e) and subsection (e-5) of
12    this Section.
13    (e-5) The statewide average operational expense per
14student among public schools shall be multiplied by the
15following factors:
16        (1) for students determined eligible to receive
17    services under the federal Individuals with Disabilities
18    Education Act, 2;
19        (2) for students who are English learners, as defined
20    in subsection (d) of Section 14C-2 of the School Code,
21    1.2; and
22        (3) for students who are gifted and talented children,
23    as defined in Section 14A-20 of the School Code, 1.1.
24    (f) A scholarship granting organization shall distribute
25scholarship payments to the participating school where the
26student is enrolled.

 

 

SB4181- 6 -LRB102 26377 HLH 36584 b

1    (g) Each For the 2018-2019 school year through the
22021-2022 school year, each scholarship granting organization
3shall expend no less than 75% of the qualified contributions
4received during the calendar year in which the qualified
5contributions were received. No more than 25% of the qualified
6contributions may be carried forward to the following calendar
7year.
8    (h) (Blank). For the 2022-2023 school year, each
9scholarship granting organization shall expend all qualified
10contributions received during the calendar year in which the
11qualified contributions were received. No qualified
12contributions may be carried forward to the following calendar
13year.
14    (i) A scholarship granting organization shall allow an
15eligible student to transfer a scholarship during a school
16year to any other participating school of the custodian's
17choice. Such scholarships shall be prorated.
18    (j) With the prior approval of the Department, a
19scholarship granting organization may transfer funds to
20another scholarship granting organization if additional funds
21are required to meet scholarship demands at the receiving
22scholarship granting organization. All transferred funds must
23be deposited by the receiving scholarship granting
24organization into its scholarship accounts. All transferred
25amounts received by any scholarship granting organization must
26be separately disclosed to the Department.

 

 

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1    (k) If the approval of a scholarship granting organization
2is revoked as provided in Section 20 of this Act or the
3scholarship granting organization is dissolved, all remaining
4qualified contributions of the scholarship granting
5organization shall be transferred to another scholarship
6granting organization. All transferred funds must be deposited
7by the receiving scholarship granting organization into its
8scholarship accounts.
9    (l) Scholarship granting organizations shall make
10reasonable efforts to advertise the availability of
11scholarships to eligible students.
12(Source: P.A. 100-465, eff. 8-31-17.)
 
13    (35 ILCS 40/65)
14    (Section scheduled to be repealed on January 1, 2025)
15    Sec. 65. Credit period; repeal.
16    (a) A taxpayer may take a credit under this Act for tax
17years beginning on or after January 1, 2018 and ending before
18January 1, 2024. A taxpayer may not take a credit pursuant to
19this Act for tax years beginning on or after January 1, 2024.
20    (b) This Act is exempt from the provisions of Section 250
21of the Illinois Income Tax Act repealed on January 1, 2025.
22(Source: P.A. 102-16, eff. 6-17-21.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.