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New Illinois education tax credit for donors, scholarships for students

The program will create up to 75 million dollars in state tax credits for Illinois residents and provide 100 million dollars in scholarship funds annually.

This past summer, the Illinois General Assembly passed the Invest in Kids Act, a new scholarship program designed to support low-income students in private schools. The program will create up to 75 million dollars in state tax credits for Illinois residents and provide 100 million dollars in scholarship funds annually. By donating to the program, Illinois residents can reduce their state tax liability and offer new educational opportunities to students in need.

 

Illinois residents are now eligible for a 75 percent state tax credit on donations made to a Scholarship Granting Organization (SGO). The Jewish Federation of Metropolitan Chicago's school network is working closely with the SGO Empower Illinois. Individuals can designate their donation to support a specific Federation school or grouping of Federation schools, but corporations cannot. Corporations can only direct donations to a SGO or region within Illinois.

 

Before donating to the program, a donor is required to register on the Illinois Department of Revenue website. The Department must first approve the individual or corporation to receive a tax credit, which is issued on a first-come, first-served basis. Once approved, donors have 60 days to submit their donation. The program prohibits a donor from claiming a federal tax deduction when applying the state tax credit.

 

The Jewish Federation of Metropolitan Chicago did not take a public position on the passage of this legislation but wants to ensure that all potential scholarship recipients and potential donors who want to assist those students be aware of this new program.

 

If you're considering being a donor, your tax advisor can help determine the tax implications. For more information on participating schools, visit empowerillinois.org.

 

If you're considering applying for a scholarship, contact your child's Jewish day school.

 

Zivya Feifel Mosbacher is the director of CBJC Day Schools for the Jewish Federation of Metropolitan Chicago.

 

Mara Ruff is associate director of State and Local Government for the Government Affairs Department of the Jewish Federation of Metropolitan Chicago.  



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