The Invest in Kids Act

The Invest in Kids Act, which was signed into law in 2017, provides up to $100,000,000 in private school K-12 scholarships to children from low-income and working-class families. Scholarships are funded through contributions from individuals and corporations to scholarship granting organizations. 

How It Works

How Your Taxes Are Affected

Illinois Taxpayers

Illinois taxpayers contribute to an organization that awards scholarships to eligible students. The taxpayer receives a tax credit equal to 75% of their contribution.


If the taxpayer did not yet pay taxes, they can withhold payments based on the value of their credit.  


If the taxpayer already paid state tax and then after contributes and claims a credit, the taxpayer receives a refund upon filing.


If the credit exceeds the taxpayer’s liability, the balance of the credit is carried over up to five years.   

Scholarship Tax Credit Educational Seminar


1. An individual with a taxable income of over $20 million has a liability of $1 million

a. The individual contributes $1,333,333 and will not pay any state income tax (or will receive a $1,000,000 refund).

b. The individual contributes $1 million will only pay $250,000 in state income tax (or will receive a $250,000 refund).

2. An individual with a taxable income of $55,000 has a withholding of $2,725 and a liability of $2,172. He would receive a refund of $553 without contributing. He also contributes $350 annually to charity.

a. If the individual contributes $2,000, he will receive an additional $1,500 for a total refund of $2,053, which exceeds his donation by $53.

b. If the individual stops his employer from withholding $2,725 and contributes $2,896, he will pay nothing in state income tax. This $2,896 contribution will cost him $14 a month.

c. If the individual wishes to simply shift tax dollars to charity without increasing his out-of-pocket costs, he contributes $1,310. That reduces his taxes by $982 to $1,190. His total out-of-pocket is $2,500 which is $22 less than it would otherwise be ($2,172 in taxes + $350 in charity = $2,522), and he has shifted nearly $1,000 from taxes to scholarships for low-income children.