Full Text of HB5081 103rd General Assembly
HB5081 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB5081 Introduced 2/8/2024, by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: | | | Creates the Investing in Tomorrow's Workforce Act. Creates an income tax credit for a taxpayer that makes a qualified contribution to a scholarship granting organization for which the taxpayer has received a certificate of receipt from the organization. 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 1. Short title. This Act may be cited as the | 5 | | Investing in Tomorrow's Workforce Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Authorized contribution" means the contribution amount | 8 | | that is listed on the contribution authorization certificate | 9 | | issued to the taxpayer. | 10 | | "Board" means the State Board of Education. | 11 | | "Contribution" means a donation made by the taxpayer | 12 | | during the taxable year for providing scholarships as provided | 13 | | in this Act. | 14 | | "Custodian" means, with respect to eligible students, an | 15 | | Illinois resident who is a parent or legal guardian of the | 16 | | eligible student or students. | 17 | | "Department" means the Department of Revenue. | 18 | | "Eligible student" means a child who: | 19 | | (1) is a member of a household whose federal adjusted | 20 | | gross income in the year before the child initially | 21 | | receives a scholarship under this Act does not exceed 300% | 22 | | of the federal poverty level and, once the child receives | 23 | | a scholarship under this Act, does not exceed 400% of the |
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| 1 | | federal poverty level; | 2 | | (2) is eligible to attend a public elementary school | 3 | | or high school in Illinois in the semester immediately | 4 | | before the semester during which he or she first receives | 5 | | a scholarship under this Act or is starting school in | 6 | | Illinois for the first time when he or she first receives a | 7 | | scholarship under this Act; and | 8 | | (3) resides in Illinois while receiving a scholarship | 9 | | under this Act. | 10 | | "Family member" means a parent, child, or sibling, whether | 11 | | by whole blood, half blood, or adoption; a spouse; or a | 12 | | stepchild. | 13 | | "Jointly administered CTE program" means a program or set | 14 | | of programs within a qualified school located in Illinois, as | 15 | | determined by the State Board of Education under Section 7.5 | 16 | | of this Act. | 17 | | "Necessary costs and fees" includes the customary charge | 18 | | for instruction and use of facilities in general and the | 19 | | additional fixed fees charged for specified purposes that are | 20 | | required generally of non-scholarship recipients for each | 21 | | academic period for which the scholarship applicant actually | 22 | | enrolls, including costs associated with student assessments. | 23 | | "Necessary cost and fees" does not include fees payable only | 24 | | once or other contingent deposits that are refundable in whole | 25 | | or in part. The Board may prescribe, by rules consistent with | 26 | | this Act, detailed provisions concerning the computation of |
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| 1 | | necessary costs and fees. | 2 | | "Qualified contribution" means the authorized contribution | 3 | | made by a taxpayer to a scholarship granting organization for | 4 | | which the taxpayer has received a certificate of receipt from | 5 | | such organization. | 6 | | "Qualified school" means a technical academy in the State. | 7 | | "Scholarship" means an educational scholarship awarded to | 8 | | an eligible student to attend a qualified school of their | 9 | | custodians' choice in an amount not exceeding the necessary | 10 | | costs and fees to attend that school. | 11 | | "Scholarship granting organization" means an entity that: | 12 | | (1) is exempt from taxation under Section 501(c)(3) of | 13 | | the Internal Revenue Code; | 14 | | (2) uses at least 95% of the qualified contributions | 15 | | received during a taxable year for scholarships; | 16 | | (3) provides scholarships to students in accordance | 17 | | with this Act; | 18 | | (4) deposits and holds qualified contributions and any | 19 | | income derived from qualified contributions in an account | 20 | | that is separate from the organization's operating fund or | 21 | | other funds until such qualified contributions or income | 22 | | is withdrawn for use; and | 23 | | (5) is approved to issue certificates of receipt. | 24 | | "Taxpayer" means any individual, corporation, partnership, | 25 | | trust, or other entity subject to the Illinois income tax. For | 26 | | the purposes of this Act, spouses filing a joint return shall |
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| 1 | | be considered one taxpayer. | 2 | | "Technical academy" means a nonpublic school located in | 3 | | Illinois that: | 4 | | (1) registers with the Board under Section 2-3.25o of | 5 | | the School Code; | 6 | | (2) operates or will operate a jointly administered | 7 | | CTE program as the primary focus of the academy; and | 8 | | (3) partners with the United States Department of | 9 | | Labor's Office of Apprenticeship, or its successor | 10 | | organization. | 11 | | To maintain its status as a technical academy, the academy | 12 | | must obtain recognition from the Board under Section 2-3.25o | 13 | | of the School Code within 2 calendar years of its registration | 14 | | with the Board. | 15 | | Section 7.5. Determination of jointly administered CTE | 16 | | programs. | 17 | | (a) Upon its own motion, or upon petition from a qualified | 18 | | school, the State Board of Education shall determine whether a | 19 | | program or set of programs offered or proposed by a qualified | 20 | | school provides coursework and training in career and | 21 | | technical education pathways aligned to industry-recognized | 22 | | certifications and credentials. The State Board of Education | 23 | | shall make that determination based upon whether the | 24 | | industry-recognized certifications or credentials that are the | 25 | | focus of a qualified school's coursework and training program |
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| 1 | | or set of programs (i) are associated with an occupation | 2 | | determined to fall under the LEADING or EMERGING priority | 3 | | sectors as determined through Illinois' Workforce Innovation | 4 | | and Opportunity Act Unified State Plan and (ii) provide wages | 5 | | that are at least 70% of the average annual wage in the State, | 6 | | as calculated by the United States Bureau of Labor Statistics. | 7 | | (b) The State Board of Education shall publish a list of | 8 | | approved jointly administered CTE programs on its website and | 9 | | otherwise make that list available to the public. A qualified | 10 | | school may petition the State Board of Education to obtain a | 11 | | determination that a proposed program or set of programs that | 12 | | it seeks to offer qualifies as a jointly administered CTE | 13 | | program under subsection (a) of this Section. A petitioner | 14 | | shall file one original petition in the form provided by the | 15 | | State Board of Education and in the manner specified by the | 16 | | State Board of Education. The petitioner may withdraw his or | 17 | | her petition by submitting a written statement to the State | 18 | | Board of Education indicating the petitioner's intent to | 19 | | withdraw. The State Board of Education shall approve or deny a | 20 | | petition within 180 days of its submission and, upon approval, | 21 | | shall proceed to add the program or set of programs to the list | 22 | | of approved jointly administered CTE programs. The approval or | 23 | | denial of any petition is a final decision of the Board, | 24 | | subject to judicial review under the Administrative Review | 25 | | Law. Jurisdiction and venue are vested in the circuit court. | 26 | | (c) The State Board of Education shall evaluate the |
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| 1 | | approved jointly administered CTE programs once every 5 years. | 2 | | During each evaluation, the State Board of Education shall | 3 | | determine whether these programs continue to meet the | 4 | | requirements of subsection (a) of this Section. | 5 | | Section 10. Credit awards. | 6 | | (a) The Department shall award credits against the tax | 7 | | imposed under subsections (a) and (b) of Section 201 of the | 8 | | Illinois Income Tax Act to taxpayers who make qualified | 9 | | contributions. For contributions made under this Act, the | 10 | | credit shall be equal to 100% of the total amount of qualified | 11 | | contributions made by the taxpayer during a taxable year, not | 12 | | to exceed a credit of $1,000,000 per taxpayer. | 13 | | (b) The aggregate amount of all credits the Department may | 14 | | award under this Act in any calendar year may not exceed | 15 | | $75,000,000. | 16 | | (c) Contributions made by corporations (including | 17 | | Subchapter S corporations), partnerships, and trusts under | 18 | | this Act may not be directed to a particular subset of | 19 | | qualified schools, a particular qualified school, a particular | 20 | | group of students, or a particular student. Contributions made | 21 | | by individuals under this Act may be directed to a particular | 22 | | subset of qualified schools or a particular qualified school | 23 | | but may not be directed to a particular group of students or a | 24 | | particular student. | 25 | | (d) No credit shall be taken under this Act for any |
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| 1 | | qualified contribution for which the taxpayer claims a federal | 2 | | income tax deduction. | 3 | | (e) Credits shall be awarded in a manner that the | 4 | | Department determines is geographically proportionate to | 5 | | enrollment in recognized nonpublic qualified schools in | 6 | | Illinois. If the cap on the aggregate credits that may be | 7 | | awarded by the Department is not reached by June 1 of a given | 8 | | year, the Department shall award the remaining credits on a | 9 | | first-come, first-served basis, without regard to the | 10 | | limitation of this subsection. | 11 | | Section 15. Approval to issue certificates of receipt. | 12 | | (a) A scholarship granting organization shall submit an | 13 | | application for approval to issue certificates of receipt in | 14 | | the form and manner prescribed by the Department, provided | 15 | | that each application shall include: | 16 | | (1) documentary evidence that the scholarship granting | 17 | | organization has been granted an exemption from taxation | 18 | | under Section 501(c)(3) of the Internal Revenue Code; | 19 | | (2) certification that all qualified contributions and | 20 | | any income derived from qualified contributions are | 21 | | deposited and held in an account that is separate from the | 22 | | scholarship granting organization's operating or other | 23 | | funds until such qualified contributions or income are | 24 | | withdrawn for use; | 25 | | (3) certification that the scholarship granting |
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| 1 | | organization will use at least 95% of its annual revenue | 2 | | from qualified contributions for scholarships; | 3 | | (4) certification that the scholarship granting | 4 | | organization will provide scholarships to eligible | 5 | | students; | 6 | | (5) a list of the names and addresses of all members of | 7 | | the governing board of the scholarship granting | 8 | | organization; and | 9 | | (6) a copy of the most recent financial audit of the | 10 | | scholarship granting organization's accounts and records | 11 | | conducted by an independent certified public accountant in | 12 | | accordance with auditing standards generally accepted in | 13 | | the United States, government auditing standards, and | 14 | | rules adopted by the Department. | 15 | | (b) A scholarship granting organization whose owner or | 16 | | operator has, in the 7 years immediately preceding the date of | 17 | | the application, filed for personal bankruptcy or corporate | 18 | | bankruptcy involving a corporation in which the owner owned | 19 | | more than 20% shall not be eligible to provide scholarships. | 20 | | (c) A scholarship granting organization must not have an | 21 | | owner or operator who owns or operates a qualified school or | 22 | | has a family member who is a paid staff member or board member | 23 | | of a participating qualified school. | 24 | | (d) A scholarship granting organization shall comply with | 25 | | the anti-discrimination provisions of 42 U.S.C. 2000d. | 26 | | (e) The Department shall review and either approve or deny |
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| 1 | | each application to issue certificates of receipt under this | 2 | | Act. Approval or denial of an application shall be made on a | 3 | | periodic basis. Applicants shall be notified of the | 4 | | Department's determination within 30 business days after the | 5 | | application is received. | 6 | | (f) No scholarship granting organization shall issue any | 7 | | certificate of receipt without first being approved to issue | 8 | | certificates of receipt. | 9 | | Section 20. Annual review. | 10 | | (a) Each scholarship granting organization that receives | 11 | | approval to issue certificates of receipt shall file an | 12 | | application for recertification on an annual basis. Such | 13 | | application for recertification shall be in the form and | 14 | | manner prescribed by the Department and shall include: | 15 | | (1) a certification from the Director or Chief | 16 | | Executive Officer of the organization that the | 17 | | organization has complied with and continues to comply | 18 | | with the requirements of this Act, including evidence of | 19 | | that compliance; and | 20 | | (2) a copy of the organization's current financial | 21 | | statements. | 22 | | (b) The Department may revoke the approval of a | 23 | | scholarship granting organization to issue certificates of | 24 | | receipt upon a finding that the organization has violated this | 25 | | Act or any rules adopted under this Act. These violations |
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| 1 | | shall include, but need not be limited to, any of the | 2 | | following: | 3 | | (1) failure to meet the requirements of this Act; | 4 | | (2) failure to maintain full and adequate records with | 5 | | respect to the receipt of qualified contributions; | 6 | | (3) failure to supply such records to the Department; | 7 | | or | 8 | | (4) failure to provide notice to the Department of the | 9 | | issuance of certificates of receipt under Section 35 of | 10 | | this Act. | 11 | | (c) Within 5 days after the determination to revoke | 12 | | approval, the Department shall provide notice of the | 13 | | determination to the scholarship granting organization and | 14 | | information regarding the process to request a hearing to | 15 | | appeal the determination. | 16 | | Section 25. Contribution authorization certificates. | 17 | | (a) A taxpayer shall not be allowed a credit under this Act | 18 | | for any contribution to a scholarship granting organization | 19 | | that was made before the Department issues to the taxpayer a | 20 | | contribution authorization certificate for the contribution. | 21 | | (b) Before making a contribution to a scholarship granting | 22 | | organization, the taxpayer shall apply to the Department for a | 23 | | contribution authorization certificate. | 24 | | (c) A taxpayer who makes more than one contribution to a | 25 | | scholarship granting organization must make a separate |
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| 1 | | application for each contribution authorization certificate. | 2 | | The application shall be in the form and manner prescribed by | 3 | | the Department, provided that the application includes: | 4 | | (1) the taxpayer's name and address; | 5 | | (2) the amount the taxpayer will contribute; and | 6 | | (3) any other information the Department deems | 7 | | necessary. | 8 | | (d) The Department may allow taxpayers to make multiple | 9 | | applications on the same form, provided that each application | 10 | | shall be treated as a separate application. | 11 | | (e) The Department shall issue credit authorization | 12 | | certificates on a first-come, first-served basis based upon | 13 | | the date that the Department received the taxpayer's | 14 | | application for the certificate subject to the provisions of | 15 | | subsection (e) of Section 10 of this Act. | 16 | | (f) A taxpayer's aggregate authorized contribution amount, | 17 | | as listed on one or more authorized contribution certificates | 18 | | issued to the taxpayer, shall not exceed the aggregate of the | 19 | | amounts listed on the taxpayer's applications submitted in | 20 | | accordance with this Section. | 21 | | (g) Each contribution authorization certificate shall | 22 | | state: | 23 | | (1) the date the certificate was issued; | 24 | | (2) the date by which the authorized contributions | 25 | | listed in the certificate must be made, which shall be 60 | 26 | | days from the date of the issuance of a credit |
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| 1 | | authorization certificate; | 2 | | (3) the total amount of authorized contributions; and | 3 | | (4) any other information the Department deems | 4 | | necessary. | 5 | | (h) Credit authorization certificates shall be mailed to | 6 | | the appropriate taxpayers within 3 business days after their | 7 | | issuance. | 8 | | (i) A taxpayer may rescind all or part of an authorized | 9 | | contribution approved under this Act by providing written | 10 | | notice to the Department. Amounts rescinded shall no longer be | 11 | | deducted from the cap prescribed in Section 10 of this Act. | 12 | | (j) The Department shall maintain on its website a running | 13 | | total of the amount of credits for which taxpayers may make | 14 | | applications for contribution authorization certification. The | 15 | | running total shall be updated every business day. | 16 | | Section 30. Certificates of receipt. | 17 | | (a) No scholarship granting organization shall issue a | 18 | | certificate of receipt for any qualified contribution made by | 19 | | a taxpayer under this Act unless that scholarship granting | 20 | | organization has been approved to issue certificates of | 21 | | receipt under Section 15 of this Act. | 22 | | (b) No scholarship granting organization shall issue a | 23 | | certificate of receipt for a contribution made by a taxpayer | 24 | | unless the taxpayer has been issued a credit authorization | 25 | | certificate by the Department. |
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| 1 | | (c) If a taxpayer makes a contribution to a scholarship | 2 | | granting organization before the date by which the authorized | 3 | | contribution shall be made, the scholarship granting | 4 | | organization shall, within 30 days of receipt of the | 5 | | authorized contribution, issue to the taxpayer a written | 6 | | certificate of receipt. | 7 | | (d) If a taxpayer fails to make all or a portion of a | 8 | | contribution before the date by which the authorized | 9 | | contribution is required to be made, the taxpayer shall not be | 10 | | entitled to a certificate of receipt for the portion of the | 11 | | authorized contribution not made. | 12 | | (e) Each certificate of receipt shall state: | 13 | | (1) the name and address of the issuing scholarship | 14 | | granting organization; | 15 | | (2) the taxpayer's name and address; | 16 | | (3) the date for each qualified contribution; | 17 | | (4) the amount of each qualified contribution; | 18 | | (5) the total qualified contribution amount; and | 19 | | (6) any other information that the Department may deem | 20 | | necessary. | 21 | | (f) Upon the issuance of a certificate of receipt, the | 22 | | issuing scholarship granting organization shall, within 10 | 23 | | days after issuing the certificate of receipt, provide the | 24 | | Department with notification of the issuance of the | 25 | | certificate in the form and manner prescribed by the | 26 | | Department, provided that the notification shall include: |
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| 1 | | (1) the taxpayer's name and address; | 2 | | (2) the date of the issuance of a certificate of | 3 | | receipt; | 4 | | (3) the qualified contribution date or dates and the | 5 | | amounts contributed on those dates; | 6 | | (4) the total qualified contribution listed on the | 7 | | certificates; | 8 | | (5) the issuing scholarship granting organization's | 9 | | name and address; and | 10 | | (6) any other information the Department may deem | 11 | | necessary. | 12 | | (g) Any portion of a contribution that a taxpayer fails to | 13 | | make by the date indicated on the authorized contribution | 14 | | certificate shall no longer be deducted from the cap | 15 | | prescribed in Section 10 of this Act. | 16 | | Section 35. Reports. | 17 | | (a) Within 180 days after the end of its fiscal year, each | 18 | | scholarship granting organization must provide to the | 19 | | Department a copy of a financial audit of its accounts and | 20 | | records conducted by an independent certified public | 21 | | accountant in accordance with auditing standards generally | 22 | | accepted in the United States, government auditing standards, | 23 | | and rules adopted by the Department. The audit must include a | 24 | | report on financial statements presented in accordance with | 25 | | generally accepted accounting principles. The audit must |
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| 1 | | include evidence that no less than 95% of qualified | 2 | | contributions received were used to provide scholarships to | 3 | | eligible students. The Department shall review all audits | 4 | | submitted under this subsection. The Department shall request | 5 | | any significant items that were omitted in violation of a rule | 6 | | adopted by the Department. The items must be provided within | 7 | | 45 days after the date of request. If a scholarship granting | 8 | | organization does not comply with the Department's request, | 9 | | the Department may revoke the scholarship granting | 10 | | organization's ability to issue certificates of receipt. | 11 | | (b) A scholarship granting organization that is approved | 12 | | to receive qualified contributions shall report to the | 13 | | Department, on a form prescribed by the Department, by January | 14 | | 31 of each calendar year. The report shall include: | 15 | | (1) the total number of certificates of receipt issued | 16 | | during the immediately preceding calendar year; | 17 | | (2) the total dollar amount of qualified contributions | 18 | | received, as set forth in the certificates of receipt | 19 | | issued during the immediately preceding calendar year; | 20 | | (3) the total number of eligible students using | 21 | | scholarships for the immediately preceding calendar year | 22 | | and the academic year in progress and the total dollar | 23 | | value of the scholarships; | 24 | | (4) the name and address of each qualified school for | 25 | | which scholarships using qualified contributions were | 26 | | issued during the immediately preceding calendar year, |
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| 1 | | detailing the number, grade, race, gender, income level, | 2 | | and residency by zip code of eligible students and the | 3 | | total dollar value of scholarships being used at each | 4 | | qualified school by priority group, as identified in | 5 | | subsection (d) of Section 40 of this Act; and | 6 | | (5) any additional information requested by the | 7 | | Department. | 8 | | (c) On or before the last day of March for each calendar | 9 | | year, for the immediately preceding calendar year, the | 10 | | Department shall submit a written report to the Governor, the | 11 | | President of the Senate, the Speaker of the House of | 12 | | Representatives, the Minority Leader of the Senate, and the | 13 | | Minority Leader of the House of Representatives regarding this | 14 | | Act. The report shall include, but not be limited to, the | 15 | | following information: | 16 | | (1) the names and addresses of all scholarship | 17 | | granting organizations approved to issue certificates of | 18 | | receipt; | 19 | | (2) the number and aggregate total of certificates of | 20 | | receipt issued by each scholarship granting organization; | 21 | | and | 22 | | (3) the information reported to the Department | 23 | | required by subsection (b) of this Section. | 24 | | (d) The sharing and reporting of student data under this | 25 | | Section must be in accordance with the requirements of the | 26 | | federal Family Educational Rights and Privacy Act and the |
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| 1 | | Illinois School Student Records Act. All parties must preserve | 2 | | the confidentiality of such information as required by law. | 3 | | Data reported by the Department under subsection (c) of this | 4 | | Section must not disaggregate data to a level that will | 5 | | disclose demographic data of individual students. | 6 | | Section 40. Scholarship granting organization | 7 | | responsibilities. | 8 | | (a) Before granting a scholarship for an academic year, | 9 | | each scholarship granting organization shall assess and | 10 | | document each student's eligibility for the academic year. | 11 | | (b) A scholarship granting organization shall grant | 12 | | scholarships only to eligible students. | 13 | | (c) A scholarship granting organization shall allow an | 14 | | eligible student to attend any qualified school of the | 15 | | student's choosing, subject to the availability of funds. | 16 | | (d) In granting scholarships, a scholarship granting | 17 | | organization shall give priority to eligible students who | 18 | | received a scholarship from a scholarship granting | 19 | | organization during the previous qualified school year. Second | 20 | | priority shall be given to the following priority groups: | 21 | | (1) eligible students who are members of a household | 22 | | whose previous year's total annual income does not exceed | 23 | | 185% of the federal poverty level; and | 24 | | (2) eligible students who are siblings of students | 25 | | currently receiving a scholarship. |
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| 1 | | (d-5) A scholarship granting organization shall begin | 2 | | granting scholarships no later than the February 1 preceding | 3 | | the academic year for which the scholarship is sought. Each | 4 | | priority group identified in subsection (d) of this Section | 5 | | shall be eligible to receive scholarships on a first-come, | 6 | | first-served basis until the April 1 immediately preceding the | 7 | | academic year for which the scholarship is sought, starting | 8 | | with the first priority group identified in subsection (d) of | 9 | | this Section. Applications for scholarships for eligible | 10 | | students meeting the qualifications of one or more priority | 11 | | groups that are received before April 1 must be either | 12 | | approved or denied within 10 business days after receipt. | 13 | | Beginning April 1, all eligible students shall be eligible to | 14 | | receive scholarships without regard to the priority groups | 15 | | identified in subsection (d) of this Section. | 16 | | (e) Except as provided in subsection (e-5) of this | 17 | | Section, scholarships shall not exceed the lesser of (i) the | 18 | | statewide average operational expense per student among public | 19 | | schools or (ii) the necessary costs and fees for attendance at | 20 | | the qualified school. A qualified school may set a lower | 21 | | maximum scholarship amount for eligible students whose family | 22 | | income falls within paragraphs (2) and (3) of this subsection | 23 | | (e); that amount may not exceed the necessary costs and fees | 24 | | for attendance at the qualified school and is subject to the | 25 | | limitations on average scholarship amounts set forth in | 26 | | paragraphs (2) and (3) of this subsection, as applicable. The |
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| 1 | | qualified school shall notify the scholarship granting | 2 | | organization of its necessary costs and fees as well as any | 3 | | maximum scholarship amount set by the qualified school. | 4 | | Scholarships shall be awarded as follows: | 5 | | (1) for eligible students whose household income is | 6 | | less than 185% of the federal poverty level, the | 7 | | scholarship shall be 100% of the amount determined under | 8 | | this subsection (e) and subsection (e-5) of this Section; | 9 | | (2) for eligible students whose household income is | 10 | | 185% or more of the federal poverty level but less than | 11 | | 250% of the federal poverty level, the average of | 12 | | scholarships shall be 75% of the amount determined under | 13 | | this subsection (e) and subsection (e-5) of this Section; | 14 | | and | 15 | | (3) for eligible students whose household income is | 16 | | 250% or more of the federal poverty level, the average of | 17 | | scholarships shall be 50% of the amount determined under | 18 | | this subsection (e) and subsection (e-5) of this Section. | 19 | | (e-5) The statewide average operational expense per | 20 | | student among public schools shall be multiplied by the | 21 | | following factors: (1) for students determined eligible to | 22 | | receive services under the federal Individuals with | 23 | | Disabilities Education Act, 2; (2) for students who are | 24 | | English learners, as defined in subsection (d) of Section | 25 | | 14C-2 of the School Code, 1.2; and (3) for students who are | 26 | | gifted and talented children, as defined in Section 14A-20 of |
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| 1 | | the School Code, 1.1. | 2 | | (f) A scholarship granting organization shall distribute | 3 | | scholarship payments to the participating qualified school | 4 | | where the student is enrolled. | 5 | | (g) Each scholarship granting organization shall expend | 6 | | all qualified contributions received during the calendar year | 7 | | in which the qualified contributions were received. No | 8 | | qualified contributions may be carried forward to the | 9 | | following calendar year. | 10 | | (h) A scholarship granting organization shall allow an | 11 | | eligible student to transfer a scholarship during the academic | 12 | | year to any other participating qualified school of the | 13 | | custodian's choice. Such scholarships shall be prorated. | 14 | | (i) With the prior approval of the Department, a | 15 | | scholarship granting organization may transfer funds to | 16 | | another scholarship granting organization if additional funds | 17 | | are required to meet scholarship demands at the receiving | 18 | | scholarship granting organization. All transferred funds must | 19 | | be deposited by the receiving scholarship granting | 20 | | organization into its scholarship accounts. All transferred | 21 | | amounts received by any scholarship granting organization must | 22 | | be separately disclosed to the Department. | 23 | | (j) If the approval of a scholarship granting organization | 24 | | is revoked as provided in Section 20 of this Act or the | 25 | | scholarship granting organization is dissolved, all remaining | 26 | | qualified contributions of the scholarship granting |
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| 1 | | organization shall be transferred to another scholarship | 2 | | granting organization. All transferred funds must be deposited | 3 | | by the receiving scholarship granting organization into its | 4 | | scholarship accounts. | 5 | | (k) Scholarship granting organizations shall make | 6 | | reasonable efforts to advertise the availability of | 7 | | scholarships to eligible students. | 8 | | Section 45. State Board responsibilities. | 9 | | (a) Students who have been granted a scholarship under | 10 | | this Act shall be annually assessed at the qualified school | 11 | | where the student attends qualified school in the same manner | 12 | | in which students that attend public schools are annually | 13 | | assessed under Section 2-3.64a-5 of the School Code. Such | 14 | | qualified school shall pay costs associated with this | 15 | | requirement. | 16 | | (b) The Board shall select an independent research | 17 | | organization, which may be a public or private entity or | 18 | | university, to which the participating qualified school must | 19 | | report the scores of students who are receiving scholarships | 20 | | and are assessed under subsection (a) of this Section. Costs | 21 | | associated with the independent research organization shall be | 22 | | paid by the scholarship granting organizations on a per-pupil | 23 | | basis or by gifts, grants, or donations received by the Board | 24 | | under subsection (d) of this Section, as determined by the | 25 | | Board. The independent research organization must annually |
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| 1 | | report to the Board on the year-to-year learning gains of | 2 | | students receiving scholarships on a statewide basis. The | 3 | | report shall also include, to the extent possible, a | 4 | | comparison of these learning gains to the statewide learning | 5 | | gains of public school students with socioeconomic backgrounds | 6 | | similar to those of students receiving scholarships. The | 7 | | annual report shall be delivered to the Board and published on | 8 | | its website. | 9 | | (c) Beginning within 120 days after the Board first | 10 | | receives the annual report by the independent research | 11 | | organization as provided in subsection (b) of this Section and | 12 | | on an annual basis thereafter, the Board shall submit a | 13 | | written report to the Governor, the President of the Senate, | 14 | | the Speaker of the House of Representatives, the Minority | 15 | | Leader of the Senate, and the Minority Leader of the House of | 16 | | Representatives regarding this Act. The report shall include | 17 | | an evaluation of the academic performance of students | 18 | | receiving scholarships and recommendations for improving | 19 | | student performance. | 20 | | (d) Subject to the State Officials and Employees Ethics | 21 | | Act, the Board may receive and expend gifts, grants, and | 22 | | donations of any kind from any public or private entity to | 23 | | carry out the purposes of this Section, subject to the terms | 24 | | and conditions under which the gifts are given, provided that | 25 | | all such terms and conditions are permissible under law. | 26 | | (e) The sharing and reporting of student learning gain |
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| 1 | | data under this Section must be in accordance with | 2 | | requirements of the federal Family Educational Rights and | 3 | | Privacy Act and the Illinois School Student Records Act. All | 4 | | parties must preserve the confidentiality of such information | 5 | | as required by law. The annual report must not disaggregate | 6 | | data to a level that will disclose the academic level of | 7 | | individual students. | 8 | | Section 50. Qualified school responsibilities. A qualified | 9 | | school that accepts scholarship students must do all of the | 10 | | following: | 11 | | (1) provide to a scholarship granting organization, | 12 | | upon request, all documentation required for the student's | 13 | | participation, including the qualified school cost and | 14 | | student's fee schedules; | 15 | | (2) be academically accountable to the custodian for | 16 | | meeting the educational needs of the student by: | 17 | | (A) at a minimum, annually providing to the | 18 | | custodian a written explanation of the student's | 19 | | progress; and | 20 | | (B) annually administering assessments required by | 21 | | subsection (a) of Section 45 of this Act in the same | 22 | | manner in which they are administered at public | 23 | | schools under Section 2-3.64a-5 of the School Code; | 24 | | the Board shall bill participating qualified schools | 25 | | for all costs associated with administering |
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| 1 | | assessments required by this paragraph; the | 2 | | participating qualified schools shall ensure that all | 3 | | test security and assessment administration procedures | 4 | | are followed; participating qualified schools must | 5 | | report individual student scores to the custodians of | 6 | | the students; the independent research organization | 7 | | described in subsection (b) of Section 45 of this Act | 8 | | shall be provided all student score data in a secure | 9 | | manner by the participating qualified school. | 10 | | The inability of a qualified school to meet the | 11 | | requirements of this Section shall constitute a basis for | 12 | | the ineligibility of the qualified school to participate | 13 | | in the scholarship program as determined by the Board. | 14 | | Section 55. Custodian and student responsibilities. | 15 | | (a) The custodian must select a qualified school and apply | 16 | | for the admission of his or her child. | 17 | | (b) The custodian shall ensure that the student | 18 | | participating in the scholarship program takes the assessment | 19 | | required by subsection (a) of Section 45 of this Act. | 20 | | (c) Each custodian and each student has an obligation to | 21 | | comply with the published policies of the qualified school. | 22 | | (d) The custodian shall authorize the scholarship granting | 23 | | organization to access information needed for income | 24 | | eligibility determinations. |
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| 1 | | Section 60. Recordkeeping; rulemaking; violations. | 2 | | (a) Each taxpayer shall, for each taxable year for which | 3 | | the tax credit provided for under this Act is claimed, | 4 | | maintain records of the following information: (i) | 5 | | contribution authorization certificates obtained under Section | 6 | | 25 of this Act and (ii) certificates of receipt obtained under | 7 | | Section 30 of this Act. | 8 | | (b) The Board and the Department may adopt rules | 9 | | consistent with and necessary for the implementation of this | 10 | | Act. | 11 | | (c) Violations of State laws or rules and complaints | 12 | | relating to program participation shall be referred to the | 13 | | Attorney General. | 14 | | Section 65. Credit period; repeal. A taxpayer may take a | 15 | | credit under this Act for tax years beginning on or after | 16 | | January 1, 2025. This Act is exempt from the provisions of | 17 | | Section 250 of the Illinois Income Tax Act. | 18 | | Section 70. Inseverability. The provisions of this Act are | 19 | | mutually dependent and inseverable. If any provision is held | 20 | | invalid other than as applied to a particular person or | 21 | | circumstance, then this entire Act is invalid. | 22 | | Section 75. Saving clause. Any repeal or amendment made by | 23 | | this Act shall not affect or impair any of the following: suits |
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| 1 | | pending or rights existing at the time this Act takes effect; | 2 | | any grant or conveyance made or right acquired or cause of | 3 | | action now existing under any Section, Article, or Act | 4 | | repealed or amended by this Act; the validity of any bonds or | 5 | | other obligations issued or sold and constituting valid | 6 | | obligations of the issuing authority at the time this Act | 7 | | takes effect; the validity of any contract; the validity of | 8 | | any tax levied under any law in effect prior to the effective | 9 | | date of this Act; or any offense committed, act done, penalty, | 10 | | punishment, or forfeiture incurred or any claim, right, power, | 11 | | or remedy accrued under any law in effect prior to the | 12 | | effective date of this Act. | 13 | | Section 900. The Illinois Income Tax Act is amended by | 14 | | adding Section 241 as follows: | 15 | | (35 ILCS 5/241 new) | 16 | | Sec. 241. Investing in Tomorrow's Workforce Act. | 17 | | (a) For taxable years beginning on or after January 1, | 18 | | 2025, each taxpayer for whom a tax credit has been awarded by | 19 | | the Department under the Investing in Tomorrow's Workforce Act | 20 | | is entitled to a credit against the tax imposed under | 21 | | subsections (a) and (b) of Section 201 as provided in that Act. | 22 | | (b) Partners and shareholders of subchapter S corporations | 23 | | are entitled to a credit under this Section as provided in | 24 | | Section 251. |
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| 1 | | (c) This Section is exempt from the provisions of Section | 2 | | 250. | 3 | | Section 999. Effective date. This Act takes effect upon | 4 | | becoming law. |
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