Illinois General Assembly - Full Text of HB4341
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Full Text of HB4341  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 1/16/2024, by Rep. Curtis J. Tarver, II


15 ILCS 505/16.11 new
35 ILCS 5/252 new
30 ILCS 105/5.1012 new

    Amends the State Treasurer Act. Provides that the State Treasurer shall establish and administer the Invest in Illinois Higher Education Program for the purposes of expanding access to higher education through scholarships awarded from the Invest in Illinois Higher Education Fund. Amends the State Finance Act. Creates the Invest in Illinois Higher Education Fund. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to any donations made by the taxpayer to the Invest in Illinois Higher Education Fund. Effective immediately.

LRB103 36333 MXP 66431 b





HB4341LRB103 36333 MXP 66431 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 State Treasurer Act is amended by adding
5Section 16.11 as follows:
6    (15 ILCS 505/16.11 new)
7    Sec. 16.11. Invest in Illinois Higher Education Program.
8    (a) The State Treasurer shall establish the Invest in
9Illinois Higher Education Program. The State Treasurer shall
10administer the Program for the purpose of expanding access to
11higher education through scholarships awarded from the Invest
12in Illinois Higher Education Fund.
13    (b) The Invest in Illinois Higher Education Fund is hereby
14established as a special fund in the State treasury. The Fund
15may receive donations as provided in Section 252 of the
16Illinois Income Tax Act, as well as gifts, grants, and
17appropriations from any lawful source. The State Treasurer
18shall use moneys in the Invest in Illinois Higher Education
19Fund for the purpose of awarding scholarships to eligible
21    (c) As used in this Section:
22    "Eligible student" means an individual who is a member of
23a household with a federal adjusted gross income that, in the



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1year before the student first receives a scholarship through
2the program established under this Section, is less than or
3equal to 300% of the federal poverty income guidelines and
4that, in any subsequent year in which the student receives a
5scholarship though the program, is less that or equal to 400%
6of the federal poverty level.
7    "Federal poverty guidelines" means the poverty guidelines
8updated periodically in the federal register by the U.S.
9Department of Health and Human Services under the authority of
1042 U.S.C. 9902(2).
11    "Necessary costs and fees" includes tuition and the
12additional fixed fees charged for specified purposes that are
13required generally of non-scholarship recipients for each
14academic period for which the scholarship applicant actually
15enrolls, but does not include fees payable only once and other
16contingent deposits that are refundable in whole or in part.
17The State Treasurer may prescribe, by rules consistent with
18this Act, detailed provisions concerning the computation of
19necessary costs and fees.
20    "Scholarship" means an educational scholarship awarded to
21an eligible student to attend a community college or public
22university in the State in an amount not exceeding the
23necessary costs and fees to attend that school.
24    Section 10. The Illinois Income Tax Act is amended by
25adding Section 252 as follows:



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1    (35 ILCS 5/252 new)
2    Sec. 252. Invest in Illinois Higher Education credit.
3    (a) For taxable years ending on or after December 31,
42024, each taxpayer who makes a donation to the Invest in
5Illinois Higher Education Fund during the taxable year is
6entitled to a credit against the tax imposed by subsections
7(a) and (b) of Section 201 in an amount equal to that donation.
8    (b) For partners, shareholders of subchapter S
9corporations, and owners of limited liability companies, if
10the liability company is treated as a partnership for purposes
11of federal and State income taxation, the credit under this
12Section shall be determined in accordance with the
13determination of income and distributive share of income under
14Sections 702 and 704 and subchapter S of the Internal Revenue
16    (c) The credit may not be carried back and may not reduce
17the taxpayer's liability to less than zero. If the amount of
18the credit exceeds the tax liability for the year, the excess
19may be carried forward and applied to the tax liability of the
205 taxable years following the excess credit year. The tax
21credit shall be applied to the earliest year for which there is
22a tax liability. If there are credits for more than one year
23that are available to offset the liability, the earlier credit
24shall be applied first.
25    (d) This Section is exempt from the provisions of Section



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2    Section 15. The State Finance Act is amended by adding
3Section 5.1012 as follows:
4    (30 ILCS 105/5.1012 new)
5    Sec. 5.1012. The Invest in Illinois Higher Education Fund.
6    Section 99. Effective date. This Act takes effect upon
7becoming law.