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The Illinois Invest in Kids Act and Scholarship Granting Organizations

On August 31, 2017, the Illinois Invest in Kids Act (“Act”) was signed into law. The Act provides an Illinois state tax credit of 75% of the amount of donations made to pay for tuition at private elementary and secondary schools in Illinois. The Act requires that these donations be directed to these schools through what will be known as scholarship granting organizations (“SGOs”). The leaders and administrators of private schools, and of religious organizations who sponsor private schools, must now consider the pros and cons of either establishing an SGO or having donations to their schools be routed through SGOs that their school is not affiliated with. One major benefit is that a taxpayer who donates to an SGO can reduce, or even eliminate, his or her state income tax obligation.

Click here for more information about the Act.

If you have questions or concerns regarding this topic and how it affects your business, please contact Ryan E. Larson at (312) 506-4488 or  [email protected]