In August 2017, the Illinois legislature passed the new Illinois Tax Credit Scholarship Program bill, Invest in Kids, which allows for a 75% income tax credit for individuals and corporations who make authorized contributions to a non-profit Scholarship Granting Organization (SGO). SGOs such as Empower Illinois and Big Shoulders will award scholarships to qualifying students based on family income.
Individuals making donations to an SGO and wishing to benefit students at Regina Dominican are best served by directing their contribution to Regina Dominican High School. Our students have the best chance of benefiting from this scholarship opportunity through this method versus donations made to more general funds at the SGO.
We encourage you to consult with your personal tax professional to determine if donating to an Invest in Kids SGO is the best way for you to support Regina Dominican students in need of financial assistance.
Required Actions to Participate in the Illinois Tax Credit Scholarship Program
A taxpayer must have a “MyTax Illinois” account to apply for the credit. If you do not currently have an account, we encourage you to do that as soon as possible, at https://mytax.illinois.gov/. Follow prompts to activiate your MyTax Illinois account. This process can take up to ten days and involves a mailed Letter ID.
Beginning January 1, 2019, donors can indicate the amount they wish to donate and reserve the corresponding tax credit. The Illinois Department of Revenue will grant tax credits on a first-come, first-served basis. Based on the experience of similar programs in other states, tax credits are claimed very quickly. We suggest you plan on making your tax credit reservation as early as possible.
Donors have 60 days from the date they receive their credit authorization certificate to donate that indicated amount to the SGO of their choice.
Donating Stock or Securities
Illinois Department of Revenue recently announced that donations of stock or securities can be accepted by Scholarship Granting Organizations. Learn more on IDOR’s website.
Who Benefits from These Scholarships?
Students whose household income is below 300 percent of the federal poverty level ($73,800 for a family of four) are eligible to receive a scholarship. Prior to April 1, 2019, a priority will be given to students whose household falls below 185 percent of the federal poverty level ($45,510 for a family of four). More information about this scholarship program can be found at Empower Illinois’ website and at the Illinois Department of Revenue website.
If you have any follow up questions, please contact Suzanne Lefevre, VP of Finance and Operations, at email@example.com for more information.
Thank you for your support of Regina Dominican students!