Full Text of HB5391 102nd General Assembly
HB5391 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5391 Introduced 1/31/2022, by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED: |
| 35 ILCS 40/5 | | 35 ILCS 40/10 | | 35 ILCS 40/40 | |
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Amends the Invest in Kids Act. Provides that non-public pre-kindergarten schools are considered qualified schools. Provides that contributions made by individuals may be directed to a particular subset of schools or a particular school. Allows qualified schools to set a maximum scholarship amount, which may not exceed the necessary costs and fees for attendance at the qualified school. 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by changing | 5 | | Sections 5, 10, 40, and 65 as follows: | 6 | | (35 ILCS 40/5) | 7 | | (Section scheduled to be repealed on January 1, 2025)
| 8 | | Sec. 5. Definitions. As used in this Act: | 9 | | "Authorized contribution" means the contribution amount | 10 | | that is listed on the contribution authorization certificate | 11 | | issued to the taxpayer.
| 12 | | "Board" means the State Board of Education.
| 13 | | "Contribution" means a donation made by the taxpayer | 14 | | during the taxable year for providing scholarships as provided | 15 | | in this Act. | 16 | | "Custodian" means, with respect to eligible students, an | 17 | | Illinois resident who is a parent or legal guardian of the | 18 | | eligible student or students.
| 19 | | "Department" means the Department of Revenue. | 20 | | "Eligible student" means a child who:
| 21 | | (1) is a member of a household whose federal adjusted | 22 | | gross income the year before he or she
initially receives | 23 | | a scholarship under this program, as determined by the |
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| 1 | | Department, does not exceed 300% of the federal poverty
| 2 | | level and, once the child receives a scholarship, does not | 3 | | exceed 400% of the federal poverty
level;
| 4 | | (2) is eligible to attend a pre-kindergarten school, | 5 | | public elementary school , or high school in Illinois in | 6 | | the semester immediately preceding the semester for which | 7 | | he or she first receives a scholarship or is
starting | 8 | | school in Illinois for the first time when he or she first | 9 | | receives a scholarship; and
| 10 | | (3) resides in Illinois while receiving a scholarship. | 11 | | "Family member" means a parent, child, or sibling, whether | 12 | | by whole blood, half blood, or adoption; spouse; or stepchild. | 13 | | "Focus district" means a school district which has a | 14 | | school that is either (i) a school that has one or more | 15 | | subgroups in which the average student performance is at or | 16 | | below the State average for the lowest 10% of student | 17 | | performance in that subgroup or (ii) a school with an average | 18 | | graduation rate of less than 60% and not identified for | 19 | | priority.
| 20 | | "Jointly administered CTE program" means a program or set | 21 | | of programs within a non-public school located in Illinois, as | 22 | | determined by the State Board of Education pursuant to Section | 23 | | 7.5 of this Act. | 24 | | "Necessary costs and fees" includes the customary charge | 25 | | for instruction and use of facilities in general
and the | 26 | | additional fixed fees charged for specified purposes that are |
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| 1 | | required generally of non-scholarship recipients for each | 2 | | academic period for which the scholarship applicant actually | 3 | | enrolls, including costs associated with student assessments, | 4 | | but does not
include fees payable only once and other | 5 | | contingent deposits that are refundable in whole or in part. | 6 | | The Board may prescribe, by rules consistent with this Act, | 7 | | detailed provisions concerning the computation of necessary | 8 | | costs and fees.
| 9 | | "Scholarship granting organization" means an entity that:
| 10 | | (1) is exempt from taxation under Section 501(c)(3) of | 11 | | the Internal Revenue Code;
| 12 | | (2) uses at least 95% of the qualified contributions | 13 | | received during a taxable year for scholarships;
| 14 | | (3) provides scholarships to students according to the | 15 | | guidelines of this Act;
| 16 | | (4) deposits and holds qualified contributions and any | 17 | | income derived from qualified contributions
in an account | 18 | | that is separate from the organization's operating fund or | 19 | | other funds until such qualified contributions or income | 20 | | are withdrawn for use; and
| 21 | | (5) is approved to issue certificates of receipt.
| 22 | | "Technical academy" means a non-public school located in | 23 | | Illinois that: (1) registers with the Board pursuant to | 24 | | Section 2-3.25 of the School Code; and (2) operates or will | 25 | | operate a jointly administered CTE program as the primary | 26 | | focus of the school. To maintain its status as a technical |
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| 1 | | academy, the non-public school must obtain recognition from | 2 | | the Board pursuant to Section 2-3.25o of the School Code | 3 | | within 2 calendar years of its registration with the Board. | 4 | | "Qualified contribution" means the authorized contribution | 5 | | made by a taxpayer to a scholarship granting organization for | 6 | | which the taxpayer has received a certificate of receipt from | 7 | | such organization.
| 8 | | "Qualified school" means a non-public school , including a | 9 | | non-public pre-kindergarten school, located in Illinois and | 10 | | recognized by the Board pursuant to Section 2-3.25o of the | 11 | | School Code.
| 12 | | "Scholarship" means an educational scholarship awarded to | 13 | | an eligible student to attend a qualified school
of their | 14 | | custodians' choice in an amount not exceeding the necessary | 15 | | costs and fees to attend that school.
| 16 | | "Taxpayer" means any individual, corporation, partnership, | 17 | | trust, or other entity subject to the Illinois income tax. For | 18 | | the purposes of this Act, 2 individuals filing a joint return | 19 | | shall be considered one taxpayer.
| 20 | | (Source: P.A. 102-16, eff. 6-17-21.) | 21 | | (35 ILCS 40/10) | 22 | | (Section scheduled to be repealed on January 1, 2025)
| 23 | | Sec. 10. Credit awards. | 24 | | (a) The Department shall award credits against the tax | 25 | | imposed under subsections (a) and (b) of Section 201 of the |
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| 1 | | Illinois Income Tax Act to taxpayers who make qualified | 2 | | contributions. For contributions made under this Act, the | 3 | | credit shall be equal to 75% of the total amount of
qualified | 4 | | contributions made by the taxpayer during a taxable year, not | 5 | | to exceed a credit of $1,000,000 per taxpayer.
| 6 | | (b) The aggregate amount of all credits the Department may | 7 | | award under this Act in any calendar year may not exceed | 8 | | $75,000,000. | 9 | | (c) Contributions made by individuals, corporations | 10 | | (including Subchapter S corporations), partnerships, and | 11 | | trusts under this Act may not be directed to a particular | 12 | | subset of schools, a particular school, a particular group of | 13 | | students, or a particular student.
Contributions made by | 14 | | individuals under this Act may be directed to a particular | 15 | | subset of schools or a particular school but may not be | 16 | | directed to a particular group of students or a particular | 17 | | student. | 18 | | (d) No credit shall be taken under this Act for any | 19 | | qualified contribution for which the taxpayer claims a federal | 20 | | income tax deduction. | 21 | | (e) Credits shall be awarded in a manner, as determined by | 22 | | the Department, that is geographically proportionate to | 23 | | enrollment in recognized non-public schools in Illinois. If | 24 | | the cap on the aggregate credits that may be awarded by the | 25 | | Department is not reached by June 1 of a given year, the | 26 | | Department shall award remaining credits on a first-come, |
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| 1 | | first-served basis, without regard to the limitation of this | 2 | | subsection.
| 3 | | (f) Credits awarded for donations made to a technical | 4 | | academy shall be awarded without regard to subsection (e), but | 5 | | shall not exceed 15% of the annual statewide program cap. For | 6 | | the purposes of this subsection, "technical academy" means a | 7 | | technical academy that is registered with the Board within 30 | 8 | | days after the effective date of this amendatory Act of the | 9 | | 102nd General Assembly. | 10 | | (Source: P.A. 102-16, eff. 6-17-21.) | 11 | | (35 ILCS 40/40) | 12 | | (Section scheduled to be repealed on January 1, 2025)
| 13 | | Sec. 40. Scholarship granting organization | 14 | | responsibilities. | 15 | | (a) Before granting a scholarship for an academic year, | 16 | | all scholarship granting organizations shall assess and | 17 | | document each student's eligibility for the academic year.
| 18 | | (b) A scholarship granting organization shall grant | 19 | | scholarships only to eligible students.
| 20 | | (c) A scholarship granting organization shall allow an | 21 | | eligible student to attend any qualified school of the | 22 | | student's choosing, subject to the availability of funds.
| 23 | | (d) In granting scholarships, a scholarship granting | 24 | | organization shall give priority to the following priority | 25 | | groups: |
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| 1 | | (1) eligible students who received a scholarship from | 2 | | a scholarship granting organization during the previous | 3 | | school year;
| 4 | | (2) eligible students who are members of a household | 5 | | whose previous year's total annual income does not exceed | 6 | | 185% of the federal poverty level;
| 7 | | (3) eligible students who reside within a focus | 8 | | district; and
| 9 | | (4) eligible students who are siblings of students | 10 | | currently receiving a scholarship.
| 11 | | (d-5) A scholarship granting organization shall begin | 12 | | granting scholarships no later than February 1 preceding the | 13 | | school year for which the scholarship is sought. The priority | 14 | | groups identified in subsection (d) of this Section shall be | 15 | | eligible to receive scholarships on a first-come, first-served | 16 | | basis until the April 1 immediately preceding the school year | 17 | | for which the scholarship is sought. Applications for | 18 | | scholarships for eligible students meeting the qualifications | 19 | | of one or more priority groups that are received before April 1 | 20 | | must be either approved or denied within 10 business days | 21 | | after receipt. Beginning April 1, all eligible students shall | 22 | | be eligible to receive scholarships without regard to the | 23 | | priority groups identified in subsection (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 | 2 | | at the qualified school ; or (iii) the maximum scholarship | 3 | | amount set by the qualified school, if the qualified school | 4 | | chooses to set such an amount, which may not exceed the | 5 | | necessary costs and fees for attendance at the qualified | 6 | | school. The qualified school shall notify the scholarship | 7 | | granting organization of its necessary costs and fees as well | 8 | | as any maximum scholarship amount set by the school .
| 9 | | Scholarships shall be prorated as follows: | 10 | | (1) for eligible students whose household income is | 11 | | less than 185% of the federal poverty level, the | 12 | | scholarship shall be 100% of the amount determined | 13 | | pursuant to this subsection (e) and subsection (e-5) of | 14 | | this Section; | 15 | | (2) for eligible students whose household income is | 16 | | 185% or more of the federal poverty level but less than | 17 | | 250% of the federal poverty level, the average of | 18 | | scholarships shall be 75% of the amount determined | 19 | | pursuant to this subsection (e) and subsection (e-5) of | 20 | | this Section or in an amount set by the qualified school | 21 | | pursuant to item (iii) of subsection (e) of this Section ; | 22 | | and | 23 | | (3) for eligible students whose household income is | 24 | | 250% or more of the federal poverty level, the average of | 25 | | scholarships shall be 50% of the amount determined | 26 | | pursuant to this subsection (e) and subsection (e-5) of |
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| 1 | | this Section. | 2 | | (e-5) The statewide average operational expense per | 3 | | student among public schools shall be multiplied by the | 4 | | following factors: | 5 | | (1) for students determined eligible to receive | 6 | | services under the federal Individuals with Disabilities | 7 | | Education Act, 2; | 8 | | (2) for students who are English learners, as defined | 9 | | in subsection (d) of Section 14C-2 of the School Code, | 10 | | 1.2; and | 11 | | (3) for students who are gifted and talented children, | 12 | | as defined in Section 14A-20 of the School Code, 1.1. | 13 | | (f) A scholarship granting organization shall distribute | 14 | | scholarship payments to the participating school where the | 15 | | student is enrolled.
| 16 | | (g) For the 2018-2019 school year through the 2021-2022 | 17 | | school year, each scholarship granting organization shall | 18 | | expend no less than 75% of the qualified contributions | 19 | | received during the calendar year in which the qualified | 20 | | contributions were received. No more than 25% of the
qualified | 21 | | contributions may be carried forward to the following calendar | 22 | | year.
| 23 | | (h) For the 2022-2023 school year, each scholarship | 24 | | granting organization shall expend all qualified contributions | 25 | | received during the calendar year in which the qualified | 26 | | contributions were
received. No qualified contributions may be |
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| 1 | | carried forward to the following calendar year.
| 2 | | (i) A scholarship granting organization shall allow an | 3 | | eligible student to transfer a scholarship during a school | 4 | | year to any other participating school of the custodian's | 5 | | choice. Such scholarships shall be prorated.
| 6 | | (j) With the prior approval of the Department, a | 7 | | scholarship granting organization may transfer funds to | 8 | | another scholarship granting organization if additional funds | 9 | | are required to meet scholarship demands at the receiving | 10 | | scholarship granting organization. All transferred funds must | 11 | | be
deposited by the receiving scholarship granting | 12 | | organization into its scholarship accounts. All transferred | 13 | | amounts received by any scholarship granting organization must | 14 | | be separately
disclosed to the Department.
| 15 | | (k) If the approval of a scholarship granting organization | 16 | | is revoked as provided in Section 20 of this Act or the | 17 | | scholarship granting organization is dissolved, all remaining | 18 | | qualified contributions of the scholarship granting | 19 | | organization shall be transferred to another scholarship | 20 | | granting organization. All transferred funds must be deposited | 21 | | by the receiving scholarship granting organization into its | 22 | | scholarship accounts. | 23 | | (l) Scholarship granting organizations shall make | 24 | | reasonable efforts to advertise the availability of | 25 | | scholarships to eligible students.
| 26 | | (Source: P.A. 100-465, eff. 8-31-17 .)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.
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