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HB 4201

EDUCATIONAL TAX CREDIT

104th Regular Session Introduced by Tony McCombie and 1 co-sponsor

HB 4201 allows Illinois to join a federal tax credit program, offering up to $1,700 for donations to scholarship organizations, boosting school choice for families.

Added Co-Sponsor Rep. Dan Ugaste
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Bill Summary · HB 4201

Summary of HB 4201 - SCH CD-FED TAX CREDIT ELECTION

Bill Information:
- Bill Number: HB 4201
- Title: SCH CD-FED TAX CREDIT ELECTION
- Status: Filed with the Clerk by Rep. Tony M. McCombie
- Introduced: November 10, 2025
- Classification: Bill

Purpose and Intent

HB 4201, also referred to as the Educational Choice for Illinois Children Act, aims to enhance educational opportunities for students in Illinois by allowing the state to participate in a federal tax credit program. This program is designed to support individuals who make contributions to scholarship granting organizations, thereby facilitating school choice for families.

Key Provisions

The bill introduces several important provisions:

  1. Participation in Federal Tax Credit:

    • The General Assembly voluntarily elects to participate in the federal tax credit established under the One Big Beautiful Bill Act. This act provides a tax credit of up to $1,700 for individuals who donate to scholarship granting organizations.

  2. Certification of Scholarship Granting Organizations:

    • The State Board of Education is authorized to certify and submit a list of qualifying scholarship granting organizations to the Secretary of the Treasury of the United States. This list will include organizations located in Illinois that meet the requirements of the federal act.

  3. Annual Reporting Requirement:

    • By January 1, 2027, and every January 1 thereafter, the State Board must submit and publish a list of all qualifying scholarship granting organizations on its website. This ensures transparency and accessibility for potential donors.

Impact

Affected Parties

  • Students and Families: The bill aims to provide financial assistance to families seeking to enroll their children in schools of their choice, including private institutions. This is particularly beneficial for families who may struggle to afford tuition and related educational expenses.
  • Scholarship Granting Organizations: Organizations that qualify under the federal act will be able to receive contributions that are incentivized through tax credits, potentially increasing their funding and ability to provide scholarships.
  • State Education System: The bill positions Illinois to remain competitive with neighboring states that may also opt into similar school choice provisions, addressing concerns about educational performance highlighted in recent assessments.

Educational Context

The bill is introduced in response to findings indicating that a significant percentage of Illinois students are not meeting proficiency standards in key subjects. By facilitating access to alternative educational options, the bill seeks to address these educational challenges and promote better outcomes for students.

Procedural Aspects

  • The bill was filed on November 10, 2025, and is currently in the legislative process. If enacted, it will require ongoing compliance with federal regulations and annual reporting to maintain its benefits.

In summary, HB 4201 represents a strategic move by the Illinois General Assembly to enhance educational choice and support families in accessing quality education through financial incentives for contributions to scholarship granting organizations.

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

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