Illinois’ new program offering tax incentives for donations to private school scholarships is off to and running at a significant pace.
An eleventh-hour addition to the education reform bill signed into law last year, the Invest in Kids Scholarship Tax Credit Program gives 75 cents on the dollar in state tax credits for donations that are distributed to children hoping to attend private schools but aren’t able to afford the cost.
Donations from people and businesses are reserved with the state and then given to one of the five Scholarship Granting Organizations, or SGOs. They will then distribute the scholarship dollars to applying students whose parents wish to choose a private school over their local public school. Students may apply for the scholarships through the SGOs beginning Jan. 24th. The program will support scholarships for up to 15,000 students annually and sunsets in 2024.
In less than 48 hours, the Illinois Department of Revenue reported $36 million of the allotted $100 million had been pledged for donation.
More than one-third of all available contributions were allocated in the first hour Tuesday morning.
“This outpouring of generosity is truly a testament to the many Illinoisans who believe in offering students and their families a choice in their education,” said Gov. Bruce Rauner in a release.
Rauner has long advocated for school choice programs.
“We’re absolutely amazed at the generosity of donors throughout the state,” said Myles Mendoza, Executive Director at Empower Illinois, one of the qualifying SGOs and recipient of the vast majority of the pledges. “The fact that Empower Illinois received $29 million in tax credit reservations is really a sign of strength of the coalition that’s working underneath our umbrella.”
More than 1,000 donors have pledged to the program at a median of $4,000, Mendoza said. Donations are capped at $1.3 million.
With the window opening after a holiday weekend, Mendoza thinks there will be an uptick in giving since there is an up to ten-day lag between time registered and the time reserved.
The program has been criticized by public teachers unions, saying it will sap resources from districts when fewer students attend. A number of Democrats withdrew their support from the education funding bill once the program was added. Multiple Democratic candidates for Illinois governor have said they would end the program if they are elected this fall.
Taxpayers wishing to contribute to Invest in Kids may apply online through MyTax Illinois.
[The story above is from Illinois Radio Network News.]
