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HB 2649

INVEST IN KIDS-REENACT

104th Regular Session Introduced by Marty McLaughlin

Reenacts and makes permanent the Illinois Invest in Kids Act, preserving private-school scholarship tax credits for donors and eligible students, effective immediately.

Referred to Rules Committee
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Bill Summary · HB 2649

Summary — HB 2649 (Invest in Kids — Reenact)

Status: Introduced (referred to Rules Committee) — Introduced February 11, 2025
Primary sponsor: Rep. Martin McLaughlin

Purpose / Intent

HB 2649 would reenact and amend the Illinois Invest in Kids Act (a scholarship tax-credit program that supports private school scholarships through donations to scholarship-granting organizations). The bill removes the Act’s scheduled repeal and makes it permanent, and it makes conforming changes to the Illinois Income Tax Act. The bill is effective immediately if enacted.

Key provisions and changes

  • Reenactment and permanence

    • Reenacts the Invest in Kids Act (previously scheduled to be repealed Jan. 1, 2025) and makes it permanent.
    • Adds a new Section 70 to the Act and amends existing Sections 40 and 65 (text in the filing is partially truncated).

  • Definitions and eligibility clarifications (selected)

    • Eligible student: a child from a household whose federal adjusted gross income in the year before first receiving a scholarship does not exceed 300% of the federal poverty level (and after first receiving a scholarship does not exceed 400% of the federal poverty level); the child must be eligible to attend a public elementary or high school in Illinois immediately prior to first receiving the scholarship (or be starting school in Illinois) and must reside in Illinois while receiving a scholarship.
    • Scholarship: an award for an eligible student to attend a qualified non‑public school in Illinois, in an amount not to exceed the school’s necessary costs and fees for the applicable academic period.
    • Qualified school: a non‑public Illinois school recognized by the State Board of Education (cites School Code section).
    • Scholarship‑granting organization (SGO) requirements:
    • Must be a 501(c)(3) organization.
    • Must use at least 95% of qualified contributions received in a taxable year for scholarships.
    • Must keep qualified contributions and any income from them in a fund separate from operating funds.
    • Must be approved to issue contribution/receipt certificates.

  • Tax conformity

    • Amends the Illinois Income Tax Act (35 ILCS 5/224 referenced) to make conforming changes so taxpayers making qualified contributions can receive applicable tax treatment/credits consistent with the Invest in Kids program.

  • Career/CTE program determination (Section 7.5)

    • The State Board of Education will determine whether certain non‑public programs qualify as “jointly administered CTE programs,” using criteria tied to state workforce plans and wage thresholds (programs must lead to industry‑recognized credentials and occupations paying at least 70% of the State average annual wage).
    • The Board will publish and maintain a list of approved jointly administered CTE programs and must act on petitions within 180 days.

Who is affected

  • Donors/taxpayers in Illinois who make contributions to SGOs (they may be eligible for tax credits or other tax treatment under the Illinois Income Tax Act).
  • Scholarship‑granting organizations (must meet the specified 501(c)(3) and operational requirements).
  • Low‑ and moderate‑income Illinois students and their custodians who might receive scholarships to attend qualified non‑public schools (income thresholds specified).
  • Qualified non‑public schools that can accept scholarship recipients and that seek Board recognition or CTE program determinations.

Procedural / timeline notes

  • Filed/introduced Feb. 11, 2025; referred to Rules Committee.
  • The bill text filed includes truncated portions and some extraneous material (an unrelated Arizona bill text appears in the filing). The bill summary above is based on the Illinois Invest in Kids Act reenactment and the readable portions of the submitted language.
  • If enacted, the bill is written to take effect immediately.

Caveats / uncertainties

  • The posted document is partially truncated and contains extraneous text (including an Arizona House bill). Some amended provisions (including specific changes in Sections 40 and 65 and the full content of new Section 70) are not fully visible in the provided copy. For a complete legal analysis, consult the final enrolled bill text or the Legislative Reference Bureau’s version once available.

Compiled from official sources — confirm details with the bill’s official record.

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