Full Text of HB1257 103rd General Assembly
HB1257ham001 103RD GENERAL ASSEMBLY | Rep. Joe C. Sosnowski Filed: 3/3/2023
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| 1 | | AMENDMENT TO HOUSE BILL 1257
| 2 | | AMENDMENT NO. ______. Amend House Bill 1257 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 224 as follows: | 6 | | (35 ILCS 5/224) | 7 | | Sec. 224. Invest in Kids credit. | 8 | | (a) For taxable years beginning on or after January 1, | 9 | | 2018 and ending before January 1, 2024 , each taxpayer for whom | 10 | | a tax credit has been awarded by the Department under the | 11 | | Invest in Kids Act is entitled to a credit against the tax | 12 | | imposed under subsections (a) and (b) of Section 201 of this | 13 | | Act in an amount equal to the amount awarded under the Invest | 14 | | in Kids Act. | 15 | | (b) For partners, shareholders of subchapter S | 16 | | corporations, and owners of limited liability companies, if |
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| 1 | | the liability company is treated as a partnership for purposes | 2 | | of federal and State income taxation, the credit under this | 3 | | Section shall be determined in accordance with the | 4 | | determination of income and distributive share of income under | 5 | | Sections 702 and 704 and subchapter S of the Internal Revenue | 6 | | Code. | 7 | | (c) The credit may not be carried back and may not reduce | 8 | | the taxpayer's liability to less than zero. If the amount of | 9 | | the credit exceeds the tax liability for the year, the excess | 10 | | may be carried forward and applied to the tax liability of the | 11 | | 5 taxable years following the excess credit year. The tax | 12 | | credit shall be applied to the earliest year for which there is | 13 | | a tax liability. If there are credits for more than one year | 14 | | that are available to offset the liability, the earlier credit | 15 | | shall be applied first. | 16 | | (d) A tax credit awarded by the Department under the | 17 | | Invest in Kids Act may not be claimed for any qualified | 18 | | contribution for which the taxpayer claims a federal income | 19 | | tax deduction.
| 20 | | (e) This Section is exempt from the provisions of Section | 21 | | 250. | 22 | | (Source: P.A. 102-699, eff. 4-19-22.) | 23 | | Section 10. The Invest in Kids Act is amended by changing | 24 | | Sections 10, 40, and 65 as follows: |
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| 1 | | (35 ILCS 40/10) | 2 | | (Section scheduled to be repealed on January 1, 2025)
| 3 | | Sec. 10. Credit awards. | 4 | | (a) The Department shall award credits against the tax | 5 | | imposed under subsections (a) and (b) of Section 201 of the | 6 | | Illinois Income Tax Act to taxpayers who make qualified | 7 | | contributions. For taxable years ending on or before December | 8 | | 31, 2023, for For contributions made under this Act, the | 9 | | credit shall be equal to 75% of the total amount of
qualified | 10 | | contributions made by the taxpayer during a taxable year, not | 11 | | to exceed a credit of $1,000,000 per taxpayer.
For taxable | 12 | | years beginning on or after January
1, 2024, for contributions | 13 | | made under this Act, the credit shall be equal to 100% of the | 14 | | total amount of
qualified contributions made by the taxpayer | 15 | | during a taxable year, not to exceed a credit of $1,000,000 per | 16 | | taxpayer. | 17 | | (b) The aggregate amount of all credits the Department may | 18 | | award under this Act in any calendar year may not exceed | 19 | | $75,000,000. | 20 | | (c) Contributions made by corporations (including | 21 | | Subchapter S corporations), partnerships, and trusts under | 22 | | this Act may not be directed to a particular subset of schools, | 23 | | a particular school, a particular group of students, or a | 24 | | particular student.
Contributions made by individuals under | 25 | | this Act may be directed to a particular subset of schools or a | 26 | | particular school but may not be directed to a particular |
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| 1 | | group of students or a particular student. | 2 | | (d) No credit shall be taken under this Act for any | 3 | | qualified contribution for which the taxpayer claims a federal | 4 | | income tax deduction. | 5 | | (e) Credits shall be awarded in a manner, as determined by | 6 | | the Department, that is geographically proportionate to | 7 | | enrollment in recognized non-public schools in Illinois. If | 8 | | the cap on the aggregate credits that may be awarded by the | 9 | | Department is not reached by June 1 of a given year, the | 10 | | Department shall award remaining credits on a first-come, | 11 | | first-served basis, without regard to the limitation of this | 12 | | subsection.
| 13 | | (f) Credits awarded for donations made to a technical | 14 | | academy shall be awarded without regard to subsection (e), but | 15 | | shall not exceed 15% of the annual statewide program cap. For | 16 | | the purposes of this subsection, "technical academy" means a | 17 | | technical academy that is registered with the Board within 30 | 18 | | days after the effective date of this amendatory Act of the | 19 | | 102nd General Assembly. | 20 | | (Source: P.A. 102-16, eff. 6-17-21.) | 21 | | (35 ILCS 40/40) | 22 | | (Section scheduled to be repealed on January 1, 2025)
| 23 | | Sec. 40. Scholarship granting organization | 24 | | responsibilities. | 25 | | (a) Before granting a scholarship for an academic year, |
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| 1 | | all scholarship granting organizations shall assess and | 2 | | document each student's eligibility for the academic year.
| 3 | | (b) A scholarship granting organization shall grant | 4 | | scholarships only to eligible students.
| 5 | | (c) A scholarship granting organization shall allow an | 6 | | eligible student to attend any qualified school of the | 7 | | student's choosing, subject to the availability of funds.
| 8 | | (d) In granting scholarships, beginning in the 2022-2023 | 9 | | school year and for each school year thereafter, a scholarship | 10 | | granting organization shall give priority to eligible students | 11 | | who received a scholarship from a scholarship granting | 12 | | organization during the previous school year. Second priority | 13 | | shall be given to the following priority groups: | 14 | | (1) (blank);
| 15 | | (2) eligible students who are members of a household | 16 | | whose previous year's total annual income does not exceed | 17 | | 185% of the federal poverty level;
| 18 | | (3) eligible students who reside within a focus | 19 | | district; and
| 20 | | (4) eligible students who are siblings of students | 21 | | currently receiving a scholarship.
| 22 | | (d-5) A scholarship granting organization shall begin | 23 | | granting scholarships no later than February 1 preceding the | 24 | | school year for which the scholarship is sought. Each priority | 25 | | group identified in subsection (d) of this Section shall be | 26 | | eligible to receive scholarships on a first-come, first-served |
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| 1 | | basis until April 1 immediately preceding the school year for | 2 | | which the scholarship is sought , starting with the first | 3 | | priority group identified in subsection (d) of this Section. | 4 | | Applications for scholarships for eligible students meeting | 5 | | the qualifications of one or more priority groups that are | 6 | | received before April 1 must be either approved or denied | 7 | | within 10 business days after receipt. Beginning April 1, all | 8 | | eligible students shall be eligible to receive scholarships | 9 | | without regard to the priority groups identified in subsection | 10 | | (d) of this Section. | 11 | | (e) Except as provided in subsection (e-5) of this | 12 | | Section, scholarships shall not exceed the lesser of (i) the | 13 | | statewide average operational expense per
student among public | 14 | | schools or (ii) the necessary costs and fees for attendance at | 15 | | the qualified school. A qualified school may set a lower | 16 | | maximum scholarship amount for eligible students whose family | 17 | | income falls within paragraphs (2) and (3) of this subsection | 18 | | (e); that amount may not exceed the necessary costs and fees | 19 | | for attendance at the qualified school and is subject to the | 20 | | limitations on average scholarship amounts set forth in | 21 | | paragraphs (2) and (3) of this subsection, as applicable. The | 22 | | qualified school shall notify the scholarship granting | 23 | | organization of its necessary costs and fees as well as any | 24 | | maximum scholarship amount set by the school.
Scholarships | 25 | | shall be prorated as follows: | 26 | | (1) for eligible students whose household income is |
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| 1 | | less than 185% of the federal poverty level, the | 2 | | scholarship shall be 100% of the amount determined | 3 | | pursuant to this subsection (e) and subsection (e-5) of | 4 | | this Section; | 5 | | (2) for eligible students whose household income is | 6 | | 185% or more of the federal poverty level but less than | 7 | | 250% of the federal poverty level, the average of | 8 | | scholarships shall be 75% of the amount determined | 9 | | pursuant to this subsection (e) and subsection (e-5) of | 10 | | this Section; and | 11 | | (3) for eligible students whose household income is | 12 | | 250% or more of the federal poverty level, the average of | 13 | | scholarships shall be 50% of the amount determined | 14 | | pursuant to this subsection (e) and subsection (e-5) of | 15 | | this Section. | 16 | | (e-5) The statewide average operational expense per | 17 | | student among public schools shall be multiplied by the | 18 | | following factors: | 19 | | (1) for students determined eligible to receive | 20 | | services under the federal Individuals with Disabilities | 21 | | Education Act, 2; | 22 | | (2) for students who are English learners, as defined | 23 | | in subsection (d) of Section 14C-2 of the School Code, | 24 | | 1.2; and | 25 | | (3) for students who are gifted and talented children, | 26 | | as defined in Section 14A-20 of the School Code, 1.1. |
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| 1 | | (f) A scholarship granting organization shall distribute | 2 | | scholarship payments to the participating school where the | 3 | | student is enrolled.
| 4 | | (g) Each For the 2018-2019 school year through the | 5 | | 2022-2023 school year, each scholarship granting organization | 6 | | shall expend no less than 75% of the qualified contributions | 7 | | received during the calendar year in which the qualified | 8 | | contributions were received. No more than 25% of the
qualified | 9 | | contributions may be carried forward to the following calendar | 10 | | year.
| 11 | | (h) (Blank). For the 2023-2024 school year, each | 12 | | scholarship granting organization shall expend all qualified | 13 | | contributions received during the calendar year in which the | 14 | | qualified contributions were
received. No qualified | 15 | | contributions may be carried forward to the following calendar | 16 | | year.
| 17 | | (i) A scholarship granting organization shall allow an | 18 | | eligible student to transfer a scholarship during a school | 19 | | year to any other participating school of the custodian's | 20 | | choice. Such scholarships shall be prorated.
| 21 | | (j) With the prior approval of the Department, a | 22 | | scholarship granting organization may transfer funds to | 23 | | another scholarship granting organization if additional funds | 24 | | are required to meet scholarship demands at the receiving | 25 | | scholarship granting organization. All transferred funds must | 26 | | be
deposited by the receiving scholarship granting |
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| 1 | | organization into its scholarship accounts. All transferred | 2 | | amounts received by any scholarship granting organization must | 3 | | be separately
disclosed to the Department.
| 4 | | (k) If the approval of a scholarship granting organization | 5 | | is revoked as provided in Section 20 of this Act or the | 6 | | scholarship granting organization is dissolved, all remaining | 7 | | qualified contributions of the scholarship granting | 8 | | organization shall be transferred to another scholarship | 9 | | granting organization. All transferred funds must be deposited | 10 | | by the receiving scholarship granting organization into its | 11 | | scholarship accounts. | 12 | | (l) Scholarship granting organizations shall make | 13 | | reasonable efforts to advertise the availability of | 14 | | scholarships to eligible students.
| 15 | | (Source: P.A. 102-699, eff. 4-19-22; 102-1059, eff. 6-10-22; | 16 | | revised 8-3-22.) | 17 | | (35 ILCS 40/65) | 18 | | (Section scheduled to be repealed on January 1, 2025)
| 19 | | Sec. 65. Credit period; repeal. | 20 | | (a) A taxpayer may take a credit under this Act for tax | 21 | | years beginning on or after January 1, 2018 and ending before | 22 | | January 1, 2024. A taxpayer may not take a credit pursuant to | 23 | | this Act for tax years beginning on or after January 1, 2024 .
| 24 | | (b) This Act is exempt from the provisions of Section 250 | 25 | | of the Illinois Income Tax Act repealed on January 1, 2025 .
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| 1 | | (Source: P.A. 102-16, eff. 6-17-21.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.".
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