Full Text of HB4299 103rd General Assembly
HB4299 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4299 Introduced 1/16/2024, by Rep. Paul Jacobs SYNOPSIS AS INTRODUCED: | | 35 ILCS 40/40 | | 35 ILCS 40/65 | | 35 ILCS 5/224 | |
| Amends the Invest in Kids Act. Provides that the credit under the Act is available for tax years ending before January 1, 2029 (currently, January 1, 2024). Effective immediately. |
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Invest in Kids Act is amended by changing | 5 | | Sections 40 and 65 as follows: | 6 | | (35 ILCS 40/40) | 7 | | (Section scheduled to be repealed on January 1, 2025) | 8 | | Sec. 40. Scholarship granting organization | 9 | | responsibilities. | 10 | | (a) Before granting a scholarship for an academic year, | 11 | | all scholarship granting organizations shall assess and | 12 | | document each student's eligibility for the academic year. | 13 | | (b) A scholarship granting organization shall grant | 14 | | scholarships only to eligible students. | 15 | | (c) A scholarship granting organization shall allow an | 16 | | eligible student to attend any qualified school of the | 17 | | student's choosing, subject to the availability of funds. | 18 | | (d) In granting scholarships, beginning in the 2022-2023 | 19 | | school year and for each school year thereafter, a scholarship | 20 | | granting organization shall give priority to eligible students | 21 | | who received a scholarship from a scholarship granting | 22 | | organization during the previous school year. Second priority | 23 | | shall be given to the following priority groups: |
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| 1 | | (1) (blank); | 2 | | (2) eligible students who are members of a household | 3 | | whose previous year's total annual income does not exceed | 4 | | 185% of the federal poverty level; | 5 | | (3) eligible students who reside within a focus | 6 | | district; and | 7 | | (4) eligible students who are siblings of students | 8 | | currently receiving a scholarship. | 9 | | (d-5) A scholarship granting organization shall begin | 10 | | granting scholarships no later than February 1 preceding the | 11 | | school year for which the scholarship is sought. Each priority | 12 | | group identified in subsection (d) of this Section shall be | 13 | | eligible to receive scholarships on a first-come, first-served | 14 | | basis until April 1 immediately preceding the school year for | 15 | | which the scholarship is sought, starting with the first | 16 | | priority group identified in subsection (d) of this Section. | 17 | | Applications for scholarships for eligible students meeting | 18 | | the qualifications of one or more priority groups that are | 19 | | received before April 1 must be either approved or denied | 20 | | within 10 business days after receipt. Beginning April 1, all | 21 | | eligible students shall be eligible to receive scholarships | 22 | | without regard to the priority groups identified in subsection | 23 | | (d) of this Section. | 24 | | (e) Except as provided in subsection (e-5) of this | 25 | | Section, scholarships shall not exceed the lesser of (i) the | 26 | | statewide average operational expense per student among public |
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| 1 | | schools or (ii) the necessary costs and fees for attendance at | 2 | | the qualified school. A qualified school may set a lower | 3 | | maximum scholarship amount for eligible students whose family | 4 | | income falls within paragraphs (2) and (3) of this subsection | 5 | | (e); that amount may not exceed the necessary costs and fees | 6 | | for attendance at the qualified school and is subject to the | 7 | | limitations on average scholarship amounts set forth in | 8 | | paragraphs (2) and (3) of this subsection, as applicable. The | 9 | | qualified school shall notify the scholarship granting | 10 | | organization of its necessary costs and fees as well as any | 11 | | maximum scholarship amount set by the school. Scholarships | 12 | | shall be prorated as follows: | 13 | | (1) for eligible students whose household income is | 14 | | less than 185% of the federal poverty level, the | 15 | | scholarship shall be 100% of the amount determined | 16 | | pursuant to this subsection (e) and subsection (e-5) of | 17 | | this Section; | 18 | | (2) for eligible students whose household income is | 19 | | 185% or more of the federal poverty level but less than | 20 | | 250% of the federal poverty level, the average of | 21 | | scholarships shall be 75% of the amount determined | 22 | | pursuant to this subsection (e) and subsection (e-5) of | 23 | | this Section; and | 24 | | (3) for eligible students whose household income is | 25 | | 250% or more of the federal poverty level, the average of | 26 | | scholarships shall be 50% of the amount determined |
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| 1 | | pursuant to this subsection (e) and subsection (e-5) of | 2 | | this Section. | 3 | | (e-5) The statewide average operational expense per | 4 | | student among public schools shall be multiplied by the | 5 | | following factors: | 6 | | (1) for students determined eligible to receive | 7 | | services under the federal Individuals with Disabilities | 8 | | Education Act, 2; | 9 | | (2) for students who are English learners, as defined | 10 | | in subsection (d) of Section 14C-2 of the School Code, | 11 | | 1.2; and | 12 | | (3) for students who are gifted and talented children, | 13 | | as defined in Section 14A-20 of the School Code, 1.1. | 14 | | (f) A scholarship granting organization shall distribute | 15 | | scholarship payments to the participating school where the | 16 | | student is enrolled. | 17 | | (g) For the 2018-2019 school year through the 2027-2028 | 18 | | 2022-2023 school year, each scholarship granting organization | 19 | | shall expend no less than 75% of the qualified contributions | 20 | | received during the calendar year in which the qualified | 21 | | contributions were received. No more than 25% of the qualified | 22 | | contributions may be carried forward to the following calendar | 23 | | year. | 24 | | (h) For the 2028-2029 2023-2024 school year, each | 25 | | scholarship granting organization shall expend all qualified | 26 | | contributions received during the calendar year in which the |
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| 1 | | qualified contributions were received. No qualified | 2 | | contributions may be carried forward to the following calendar | 3 | | year. | 4 | | (i) A scholarship granting organization shall allow an | 5 | | eligible student to transfer a scholarship during a school | 6 | | year to any other participating school of the custodian's | 7 | | choice. Such scholarships shall be prorated. | 8 | | (j) With the prior approval of the Department, a | 9 | | scholarship granting organization may transfer funds to | 10 | | another scholarship granting organization if additional funds | 11 | | are required to meet scholarship demands at the receiving | 12 | | scholarship granting organization. All transferred funds must | 13 | | be deposited by the receiving scholarship granting | 14 | | organization into its scholarship accounts. All transferred | 15 | | amounts received by any scholarship granting organization must | 16 | | be separately disclosed to the Department. | 17 | | (k) If the approval of a scholarship granting organization | 18 | | is revoked as provided in Section 20 of this Act or the | 19 | | scholarship granting organization is dissolved, all remaining | 20 | | qualified contributions of the scholarship granting | 21 | | organization shall be transferred to another scholarship | 22 | | granting organization. All transferred funds must be deposited | 23 | | by the receiving scholarship granting organization into its | 24 | | scholarship accounts. | 25 | | (l) Scholarship granting organizations shall make | 26 | | reasonable efforts to advertise the availability of |
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| 1 | | scholarships to eligible students. | 2 | | (Source: P.A. 102-699, eff. 4-19-22; 102-1059, eff. 6-10-22; | 3 | | 103-154, eff. 6-30-23.) | 4 | | (35 ILCS 40/65) | 5 | | (Section scheduled to be repealed on January 1, 2025) | 6 | | Sec. 65. Credit period; repeal. | 7 | | (a) A taxpayer may take a credit under this Act for tax | 8 | | years beginning on or after January 1, 2018 and ending before | 9 | | January 1, 2029 January 1, 2024 . A taxpayer may not take a | 10 | | credit pursuant to this Act for tax years beginning on or after | 11 | | January 1, 2029 January 1, 2024 . | 12 | | It is the intent of the General Assembly that the | 13 | | provisions of this Act apply continuously for tax years | 14 | | beginning on or after January 1, 2018 and ending before | 15 | | January 1, 2029, including, but not limited to, the period | 16 | | beginning on January 1, 2024 and ending on the effective date | 17 | | of this amendatory Act of the 103rd General Assembly. | 18 | | (b) This Act is repealed on January 1, 2030 January 1, | 19 | | 2025 . | 20 | | (Source: P.A. 102-16, eff. 6-17-21.) | 21 | | Section 10. The Illinois Income Tax Act is amended by | 22 | | changing Section 224 as follows: | 23 | | (35 ILCS 5/224) |
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| 1 | | Sec. 224. Invest in Kids credit. | 2 | | (a) For taxable years beginning on or after January 1, | 3 | | 2018 and ending before January 1, 2029 January 1, 2024 , each | 4 | | taxpayer for whom a tax credit has been awarded by the | 5 | | Department under the Invest in Kids Act is entitled to a credit | 6 | | against the tax imposed under subsections (a) and (b) of | 7 | | Section 201 of this Act in an amount equal to the amount | 8 | | awarded under the Invest in Kids Act. | 9 | | (b) For taxable years ending before December 31, 2023, for | 10 | | partners, shareholders of subchapter S corporations, and | 11 | | owners of limited liability companies, if the liability | 12 | | company is treated as a partnership for purposes of federal | 13 | | and State income taxation, the credit under this Section shall | 14 | | be determined in accordance with the determination of income | 15 | | and distributive share of income under Sections 702 and 704 | 16 | | and subchapter S of the Internal Revenue Code. For taxable | 17 | | years ending on or after December 31, 2023, partners and | 18 | | shareholders of subchapter S corporations are entitled to a | 19 | | credit under this Section as provided in Section 251. | 20 | | (c) The credit may not be carried back and may not reduce | 21 | | the taxpayer's liability to less than zero. If the amount of | 22 | | the credit exceeds the tax liability for the year, the excess | 23 | | may be carried forward and applied to the tax liability of the | 24 | | 5 taxable years following the excess credit year. The tax | 25 | | credit shall be applied to the earliest year for which there is | 26 | | a tax liability. If there are credits for more than one year |
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| 1 | | that are available to offset the liability, the earlier credit | 2 | | shall be applied first. | 3 | | (d) A tax credit awarded by the Department under the | 4 | | Invest in Kids Act may not be claimed for any qualified | 5 | | contribution for which the taxpayer claims a federal income | 6 | | tax deduction. | 7 | | (Source: P.A. 102-699, eff. 4-19-22; 103-396, eff. 1-1-24 .) | 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law. |
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