State of Illinois
2023 and 2024


Introduced 2/10/2023, by Sen. Jil Tracy


35 ILCS 5/234 new
105 ILCS 5/2-3.196 new

    Amends the School Code. Provides that the State Board of Education shall establish a teacher recruitment and retention program, which shall encourage both new and experienced teachers to seek employment with qualifying public schools by providing for a refundable income tax credit to each participating teacher in the amount of $3,000 per school year for no more than 5 consecutive school years. Contains requirements for participating school districts and participating teachers. Amends the Illinois Income Tax Act establishing the $3,000 tax credit for individuals designated by the State Board of Education as a participating teacher in the teacher recruitment and retention program. Effective July 1, 2023.

LRB103 28491 RJT 54872 b





SB2265LRB103 28491 RJT 54872 b

1    AN ACT concerning education.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5adding Section 234 as follows:
6    (35 ILCS 5/234 new)
7    Sec. 234. Tax credit for teacher recruitment and
8retention. For taxable years beginning on or after January 1,
92023, an individual designated as a participating teacher by
10the State Board of Education to the Department under
11subsection (l) of Section 2-3.196 of the School Code is
12entitled to a tax credit against the tax imposed by
13subsections (a) and (b) of Section 201 equal to $3,000. If the
14total amount of the tax credit provided exceeds the taxpayer's
15income tax liability for a taxable year, such excess amount
16shall be refunded to the taxpayer.
17    This Section is exempt from the provisions of Section 250.
18    Section 10. The School Code is amended by adding Section
192-3.196 as follows:
20    (105 ILCS 5/2-3.196 new)
21    Sec. 2-3.196. Teacher recruitment and retention program.



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1    (a) As used in this Section:
2    "Participating school" means a qualifying public school
3that has been selected by the Board to participate in the
5    "Participating school district" means a public school
6district that has been selected by the Board to participate in
7the program.
8    "Participating teacher" means an eligible teacher
9participating in the program who holds a Professional Educator
10License under Section 21B-20.
11    "Institution of higher education" means a public
12institution of higher education or private institution of
13higher education, as those terms are defined in Section 1 of
14the Board of Higher Education Act.
15    "Program" means the teacher recruitment and retention
16program established in this Section.
17    "Qualifying public school" means a public school that is
18located in a rural area in the State or a school that has
19performed in the lowest 5% of schools in the State as
20identified in accordance with the statewide accountability
21system established in the State plan under the federal Every
22Student Succeeds Act.
23    "Recently hired" means a licensed teacher, whether a new
24or experienced teacher, who has accepted his or her first
25school year contract to teach at a qualifying public school
26for the 2023-2024 school year, the current school year, or for



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1the immediately upcoming school year.
2    "Rural area" means an area that is more than 5 miles from
3the nearest urbanized area and more than 2.5 miles from the
4nearest urban cluster.
5    "School year contract" means a contract of full-time
6employment between a teacher and a local board of education
7covering a full school year. A contract of employment for a
8portion of a school year shall not be counted as a school year
9contract, nor shall contracts of employment for portions of a
10school year be cumulated and treated as a school year
11contract. A school year contract is deemed included within a
12contract of full-time employment between a teacher and a local
13board of education covering a full calendar or fiscal year.
14    "Urban cluster" and "urbanized area" have the meanings
15given to those terms in the Standards for Defining
16Metropolitan and Micropolitan Statistical Areas, 65 FR 82227.
17    (b) The Board shall establish a teacher recruitment and
18retention program. The purpose of the program shall be to
19encourage both new and experienced teachers to seek employment
20with qualifying public schools by providing for a refundable
21income tax credit, as provided under Section 234 of the
22Illinois Income Tax Act, to each participating teacher in the
23amount of $3,000 per school year for no more than 5 consecutive
24school years, subject to conditions provided for under this
25Section. The Board may adopt rules as necessary to implement
26and administer the program.



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1    (c) By October 1 of each year, the Board shall determine
2which public schools in the State are qualifying public
3schools and shall publish a list of all qualifying public
4schools on the Board's website. For the purposes of the
5program, a school that has been designated as a qualifying
6public school shall be eligible for selection as a
7participating school for the current school year and for at
8least the immediately upcoming school year. The Board shall
9develop criteria for the selection of no more than 100
10participating school districts and shall publish the selection
11criteria simultaneously with the publication of the list of
12qualifying school districts on the Board's website.
13    By December 1 of each year, the Board shall select no more
14than 100 participating school districts and shall publish a
15list of all participating school districts on the Board's
16website. A school district that has been designated as a
17participating school district shall be eligible to participate
18in the program for the current school year and for at least the
19immediately upcoming school year. The Board shall determine
20the total number of participating teachers authorized for each
21participating school district.
22    (d) The Board shall solicit applications from teachers who
23meet the eligibility criteria provided for in subsections (g),
24(h), and (i) and may share with participating school districts
25such applications and related materials submitted by teachers.
26    (e) The Board may provide guidance and technical



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1assistance to teachers, participating schools, and school
2districts with participating schools in the program.
3    (f) The Board shall establish program objectives and shall
4annually measure and evaluate the program. Beginning with the
52024-2025 school year, and by December 1 of each year, the
6Board shall file with the Governor and the General Assembly a
7report covering the immediately preceding school year that
8includes, but is not limited to, the following information:
9        (1) the positions filled by participating teachers
10    with corresponding information regarding the subject
11    matter and grade or grades taught; and
12        (2) the length of time participating teachers have
13    been participating in the program.
14    (g) In order to participate in the program, a teacher
16        (1) have been recently hired to teach at a
17    participating school;
18        (2) have attained a bachelor's degree in education
19    from an institution of higher education with a teacher
20    certification program approved by the Board; and
21        (3) hold a valid Professional Educator License issued
22    by the Board.
23    (h) Teachers who meet the eligibility criteria provided in
24subsection (g) and who wish to participate in the program
25shall submit to the Board a completed application to
26participate in the program, on a form and in a manner



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1prescribed by the Board. Each application shall include, but
2is not limited to:
3        (1) a copy of a teacher's school year contract to
4    teach at a participating school; and
5        (2) written verification by the principal or other
6    school personnel of the participating school that the
7    teacher was recently hired as defined under this Section.
8    (i) Eligible teachers who complete the application process
9prescribed by the Board shall be accepted to participate in
10the program on an annual basis, subject to the continuation of
11the program, the provisions of subsection (m), and for good
12cause shown by the Board.
13    (j) A teacher who is accepted by the Board to participate
14in the program shall be allowed to continue as a participating
15teacher in the program on an annual basis for up to 5
16consecutive school years if he or she remains employed under a
17school year contract as a teacher at the same school district
18continuously, regardless of whether the school remains a
19participating or qualifying public school, and subject to
20continuation of the program, the provisions of subsection (m),
21and for good cause shown by the Board.
22    (k) A participating teacher who is involuntarily
23transferred to another school within the same participating or
24qualifying school district shall be eligible to continue
25participating in the program on the same terms and conditions
26as provided in subsection (j). A participating teacher who



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1voluntarily transfers to another school is not eligible to
2continue participating in the program, effective immediately
3upon the transfer.
4    A participating teacher who receives an annual performance
5evaluation of "unsatisfactory" as provided in Sections 24A-5
6and 34-85c, shall be permanently ineligible to participate in
7the program upon the conclusion of the school year in which he
8or she received such rating.
9    A participating teacher who lawfully takes a leave of
10absence pursuant to any State or federal law retains
11eligibility to continue participating in the program if he or
12she remains unemployed under a school year contract as teacher
13at the same school continuously.
14    (l) By July 31 of each year, the Board shall notify the
15Department of Revenue of each participating teacher who has
16satisfied all terms and conditions of the program for the
17immediately preceding school year.
18    (m) The number of participating teachers in the program in
19any school year shall be limited to 1,000 participating
20teachers statewide. In the discretion of the Board,
21participation in the program may be determined according to
22the following order of priority:
23        (1) Participating teachers shall be prioritized over
24    teachers not yet participating in the program.
25        (2) Among teachers participating in the program, those
26    with greater seniority in the program shall be prioritized



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1    over those with less seniority.
2        (3) No new applications for the program shall be
3    accepted after December 31, 2033.
4    Section 99. Effective date. This Act takes effect July 1,