Illinois Tax Credit Scholarship-Donor Information
Illinois Tax Credit Scholarship Donor Information
Illinois’ “Invest in Kids Act” provides an incentive for individual and corporate donors to support nonpublic school scholarships for qualifying families. Provisions of the law include:
- Donors receive a credit (not deduction) on their Illinois Income Tax Return equal to 75% of money contributed to the scholarships.
- Individual donors may direct their donations to a particular school (Holy Family Catholic Academy). Corporations cannot designate their donations.
- The funds for this program cannot exceed $100 million in donations ($75 million in Illinois income tax credits) and is scheduled to be effective for 5 years.
Contributions to this fund benefit ALL of us. The donors benefit with a 75% tax credit, the eligible families benefit by being able to attend HFCA, and our entire community benefits as we continue to grow enrollment and at the same time reduce the amount of financial assistance we would otherwise provide to eligible families.
For more information, please see the Archdiocese of Chicago website.
Triple Your Impact Opportunity
We are excited to learn that a group of donors from the Archdiocese are offering a 2-1 match for donations made between December 1, 2019 and February 29, 2020. The matching fund is currently at $3.36 million which allows each Archdiocesan school to receive a 2-1 match on their first $50,000 of donations. The matching program will end when all matching funds have been depleted or on Feb. 29, 2020, whichever comes first.
This example illustrates the impact to donors and HFCA of a $1,000 contribution.
Result: A donor’s $250 after-tax contribution produces a benefit to HFCA of $3,000 to be used for eligible scholarships. This benefit to HFCA represents 12 times the donor’s after tax contribution!
Donors who would like to receive the tax credit for their 2019 taxes should begin the process prior to December 16, 2019 to ensure that they have enough time to make their gift by December 31, 2019. Donations completed before December 31, 2019 would be eligible for a 75% Illinois income tax credit on their 2019 tax return, filed in April 2019. Donations completed in January and February would receive the credit for their 2020 tax return, filed in April 2021.