About Tax Credit Scholarships

Illinois enacted the Invest In Kids Scholarship Tax Credit Program in 2017. This program offers a 75 percent state income tax credit to individuals and businesses that contribute to qualified Scholarship Granting Organizations (SGOs), such as Empower Illinois. The SGOs then provide scholarships for students whose families meet the income requirements to attend qualified, non-public schools in Illinois.

K-12 students who meet need-based eligibility requirements can apply for and receive scholarships through the Invest in Kids Act.Tax credit scholarships will cover up to 100% of private school tuition up to a maximum of the average Illinois cost to educate, which is about $16,000. Students with unique learning needs, including those who are gifted, English language learners, or those with special education qualifications, will receive larger scholarships based on scholarship multipliers in the Invest in Kids Act.

Individual and corporate donors may receive an Illinois state tax credit equal to 75 percent of donations to an SGO. For example, if a taxpayer donates $1,000 to an SGO; they are eligible to claim a $750 tax credit on their taxes for the year in which they made the donation.

Tax credits are capped at $1 million per taxpayer per calendar year; a donor can contribute about $1.33 million to receive the maximum tax credit allowed. Donors cannot receive a federal deduction for gifts made through this program. Total tax credits are capped at $75 million per year statewide, which equates to $100 million in donations and scholarships. Please consult a tax professional to determine making a gift can affect individual tax liability.

Individuals may direct their donations to a particular school or subset of schools, but not to an individual student or group of students. Corporate donors cannot designate their donations to a particular school.

Donors can begin the process by making an account with the Illinois Department of Revenue at mytax.illinois.gov. After the registration process, which can take up to 10 business days, donors will be ready to reserve their tax credit beginning January 2 each year on a first-come, first served basis. When reserving their tax credit, donors should select Empower Illinois as the Scholarship Granting Organization. Once their credit has been reserved, they have 60 days to make their donation to an SGO. Empower Illinois accepts gifts through ACH, checks, stocks, bonds and credit cards.