The Illinois Tax Credit Scholarship Program, “Invest in Kids,” provides a 75 percent Illinois state income tax credit to individuals and corporations that contribute money to a non-profit Scholarship Granting Organization (SGO). The SGOs award scholarships to eligible students from low-income families. These scholarships allow schools across the state to provide quality educations to young students who otherwise wouldn’t be able to attend the quality school of their parents choosing.
Through this program:
- An individual or corporation will receive a 75 percent credit on donations to an SGO. For example, if a person donates $100,000, they will receive a state tax credit of $75,000.
- Individual donors can designate their donations to a specific SGO.
- The credit can be rolled over for five years.
- Donors are prohibited from receiving a federal tax deduction for these donations.
- The program is capped at $100 million in donations, resulting in $75 million in total tax credits issued.
Beginning on January 2, 2018, individual and corporate donors will be able to reserve tax credits through mytax.illinois.gov by following these steps:
- Set up an account at mytax.illinois.gov.
- Complete the tax credit application.
- Donors will need to provide at least the following information:
- Social Security Number;
- Personal (or company) name and contact information;
- Name of SGO to which he/she plans to donate;
- Amount he/she plans to donate;
- Region to which he/she plans to donate;
- Donate to an SGO within 60 days of application being approved.
- Provide certificate from the SGO to use tax credit when filing a 2018 return in 2019.