Revenue Announces Preliminary Guidance on Invest in Kids
Act
Illinois tax-credit scholarship program
offers tax credits for contribution to an approved
Scholarship Granting Organization (SGO)
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[November 09, 2017]
The Illinois Department of Revenue (IDOR) is announcing
that general information regarding the Invest in Kids Act (IIK) (Public
Act 100-0465), the recently enacted Illinois tax-credit scholarship
program, is now available through its website tax.illinois.gov.
Beginning January 2, 2018, MyTax Illinois will begin accepting
applications from individuals and businesses who wish to participate in
IIK. To apply, individuals and businesses must report their intention to
make an authorized contribution to an approved Scholarship Granting
Organization (SGO). The SGOs, in turn, provide scholarships for eligible
Illinois students to attend qualified non-public schools in Illinois.
Taxpayers can receive a tax credit equal to 75% of their approved SGO
contribution. Those interested in applying are strongly encouraged to
register for a MyTax Illinois account as soon as possible to avoid any
processing delays when the application system goes live on January 2nd.
“We are making history in the state of Illinois,” said Governor Bruce
Rauner. “Anyone who contributes to this scholarship program is making
the best investment of all, one that ensures all of our kids have access
to quality education and a brighter future."
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IDOR is authorized to issue up to $75 million in IIK tax credits
per calendar year, beginning in 2018 for taxes filed in 2019. Approval to
contribute will be awarded on a first-come, first-served basis in a
geographically proportionate manner based on enrollment in recognized non-public
schools in Illinois. Approval is granted automatically as long as the regional
and statewide thresholds have not been met.
For the purpose of awarding credits, Illinois will be divided
into five regions, coinciding with Illinois Appellate Court district boundaries.
Contributing taxpayers will be required to select the region, SGO, and amount
they wish to contribute.
The five regions and their proportionate share of tax credits are:
Region 1, Cook County, 51.22%;
Region 2, Northern Counties, 23.09%;
Region 3, North Central Counties, 9.97%;
Region 4, Central Counties, 7.50%; and
Region 5, Southern Counties, 8.22%.
For a listing of counties in each court district, visit illinoiscourts.gov.
Organizations choosing to become a SGO can begin applying for approval to issue
certificates of receipt on December 1, 2017.
For more information on the IIK tax credits, please view IDOR’s General
Informational Bulletin, FAQs, and SGO Informational Bulletin now available at
tax.illinois.gov.
[Illinois Department of Revenue] |