Illinois Invest in Kids Act Donor FAQ
Illinois Public Act 100-0465 created the Invest in Kids Act. This Act allows state income tax credits for individual and corporate taxpayers who make authorized contributions to a Scholarship Granting Organization (SGO). The SGOs, in turn, provide scholarships for eligible students to attend non-public schools in Illinois.
Sacred Heart Schools awards over $2.2 million in tuition assistance annually to 20% of our students. To support Sacred Heart students through the Invest in Kids Act, designate your contribution to ‘Sacred Heart Schools - Academy Sacred Heart/Hardey Prep’ as the recipient of your tax credit.
Listed below are some frequently asked questions with more detailed information regarding the Invest in Kids Act.
Frequently Asked Questions
- What are tax credit scholarships?
- How does one donate through the tax credit program?
- How should I plan my contributions to Sacred Heart Schools in order to take advantage of the Illinois Invest in Kids tax credits?
- Where can I get additional information?
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.
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 school or group of schools – Sacred Heart Schools – Academy Sacred Heart/Hardey Prep.
• 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.
• The credits are divided proportionally into five regions within the state (Sacred Heart Schools is in Region 1).
To take advantage of this program a donor must:
1) Set up an account with mytax.illinois.gov. The donor must request a “Letter ID” via this website. The “Letter ID” is sent via the postal service and can take 7-10 business days to arrive. For step-by-step instructions on how to request a “Letter ID” click here.
2) Activate/Sign Up for your ‘my tax account’ once you receive your “Letter ID.” For step-by-step instructions on how to activate/sign-up for your ‘my tax account’ click here.
3) Apply for a tax credit as soon as the application is open on the website (mytax.illinois.gov) beginning at 8 am (CST) on January 2, 2018 as credits are reserved on a first-come, first-served basis.
4) Once approved, you will be issued a Contribution Authorization Certificate (CAC) by the Department of Revenue. Within 60 days, you must provide a copy of the CAC, along with the full contribution, to the Scholarship Granting Organization such as Empower Illinois. Designate your donation to Sacred Heart Schools (Academy Sacred Heart/Hardey Prep). Sacred Heart is in Region 1.
Every taxpayer’s situation is slightly different. We recommend that benefactors wishing to participate in this program speak with their tax advisor regarding the advantages and implications of the tax credit program and how a contribution to this program may reduce or eliminate your state tax liability in 2018.
The Invest in Kids website provides additional information for donors, SGOs, and schools. The Department of Revenue also published an Informational Bulletin that answers many common questions about the program. The Archdiocese of Chicago regularly maintains their FAQ’s. For more information on Sacred Heart’s SGO of choice, please visit Empower Illinois.