Section5.Definitions.

InthisAct:

ActmeanstheInvestinKidsAct.

DepartmentmeanstheIllinoisDepartmentofRevenue.

BoardmeanstheIllinoisStateBoardofEducation.

AuthorizedContributionmeansthecontributionamountthatislistedonthecontribution
authorizationcertificateissuedtothetaxpayer.

Contributionmeansadonationpaidbycash,check,electronicfundstransfer,debitcardor
creditcardthatismadebythetaxpayerduringthetaxableyear.

Custodianmeans,withrespecttoqualifyingpupils,anIllinoisresidentwhoisaparent,the
parents,alegalguardian,orthelegalguardiansofthequalifyingpupils.

Non-PublicSchoolmeansanynon-profit,non-homebased,non-publicelementaryorsecondary
schoolthatisincompliancewithTitleVIoftheCivilRightsActof1964andattendanceatwhich
satisfiestherequirementsofSection26-1oftheSchoolCode.

PublicSchoolmeansanyfreeelementaryorsecondaryschoolinIllinois.

QualifiedContributionmeanstheauthorizedcontributionmadebyanindividualorcorporate
taxpayertoascholarshipgrantingorganizationlistedinthecontributionauthorizationcertificate
issuedtothetaxpayerforwhichthetaxpayerhasreceivedacertificateofreceiptfromsuch
organization.

ScholarshipGrantingOrganizationmeansanentitythat:

1. Isexemptfromtaxationunderparagraphthreeofsubsection(c)ofsectionfivehundred
oneoftheInternalRevenueCode;

2. Providesscholarshipstostudentsatatleasttwoormorenon-publicschools;

3. Usesatleastninetypercentofqualifiedcontributionsreceivedduringataxableyearfor
scholarships;

4. ProvidesscholarshipstostudentsaccordingtotheguidelinesofthisAct;

5. Depositsandholdsqualifiedcontributionsandanyincomederivedfromqualified
contributionsinanaccountthatisseparatefromtheorganizationsoperatingorother
fundsuntilsuchqualifiedcontributionsorincomearewithdrawnforuse;and

6. Isapprovedtoissuecertificatesofreceipt.

EligibleStudentmeansachildwho:

1. Isamemberofahouseholdwhosepreviousyearstotalannualincometheyearbefore
heorshereceivesascholarshipunderthisprogramdoesnotexceed2.5timesthe
incomestandardneededtoqualifyforthefreeandreduced-pricelunchprogram;

1
 2. Waseligibletoattendapublicelementaryschoolorhighschoolinthepreceding
semesterorisstartingschoolinIllinoisforthefirsttime;and

3. ResidesinIllinoiswhilereceivingascholarship.

QualifiedSchoolmeansapublicschoolornon-publicschoollocatedinIllinois.

Scholarshipmeansaneducationalscholarshipawardtoaneligiblestudenttoattendaqualified
schooloftheircustodianschoiceinanamountnotexceedingthecostsandfeesnecessaryto
attendsuchschool;provided,however,inthecaseofaneligiblestudentattendingapublic
schoolinadistrictofwhichsuchstudentisnotaresident,theamountoftheeducational
scholarshipawardedmaynotexceedtheper-pupilspendingatthepublicschool.

Section10.CreditAwards.

(a) TheDepartmentshallawardcreditsagainstthetaximposedundersubsections(a)and(b)
ofSection201oftheIllinoisIncomeTaxActtotaxpayerswhomakequalified
contributions.Theamountofthecreditthatmaybeawardedtoataxpayerbythe
DepartmentunderthisActisanamountequaltothequalifiedcontribution.

(b) TheaggregateamountofallcreditstheDepartmentmayawardunderthisActinany
calendaryearmaynotexceed$100,000,000.Theaggregateamountofallcreditstoany
singletaxpayerinacalendaryearmaynotexceed$1,000,000.Inanycalendaryearwhen
qualifiedcontributionstoscholarshipgrantingorganizationsreach90%ofthemaximum
permittedcreditsunderthisSection,thecapshallincreaseby25%thefollowingcalendar
year.TheDepartmentshallpublishonitswebsiteinformationidentifyingthetaxcredit
capamountwhenitisincreasedunderthissubparagraph.

(c) Creditsforscholarshipgrantingorganizationsshallbedistributedproportionally
accordingtoenrollmentinrecognizedprivateschoolsintheStates5appellatecourt
districts.IfthecreditcapineachdistrictisnotreachedbythefirstdayofNovember,the
excesstaxcreditsshallbeavailableonafirst-come,first-servebasisthroughoutall5
districts.

(d) AcredittakenunderthisActmaynotbeclaimedforanycontributionthatthetaxpayer
hasorwillalsobeclaimingasafederaltaxdeduction.

Section15.ApprovaltoIssueCertificatesofReceipt.

(a) Ascholarshipgrantingorganizationshallsubmitanapplicationforapprovaltoissue
certificatesofreceiptintheformandmannerprescribedbytheDepartment,provided
thateachapplicationshallinclude:

(1) submissionofdocumentaryevidencethatthescholarshipgrantingorganization
hasbeengrantedexemptionfromtaxationunderparagraphthreeofsubsection
(C)ofsectionfivehundredoneoftheInternalRevenueCode;

(2) certificationthatallqualifiedcontributionsandanyincomederivedfromqualified
contributionsaredepositedandheldinanaccountthatisseparatefromthe
scholarshipgrantingorganizationsoperatingorotherfundsuntilsuchqualified
contributionsorincomearewithdrawnfromuse;

2
 (3) certificationthatthescholarshipgrantingorganizationwilluseatleast90%ofits
annualrevenuefromqualifiedcontributionsforscholarships;

(4) certificationthatthescholarshipgrantingorganizationwillprovidescholarshipsto
eligiblestudents;and

(5) alistofthenamesandaddressesofallmembersofthegoverningboardofthe
scholarshipgrantingorganization.

(b) TheBoardshallrevieweachapplicationtodeterminewhethertheapplicantisentitledto
approvaltoissuecertificatesofreceiptpursuanttothisarticle.Approvalordenialofan
applicationshallbemadeonaperiodicbasis.Applicantsshallbenotifiedofthe
Departmentsdeterminationwithinthreebusinessdays.

(c) Noscholarshipgrantingorganizationshallissueanycertificatesofreceiptwithoutfirst
beingapprovedtoissuecertificatesofreceipt.

Section25.AnnualReview.

(a) Eachscholarshipgrantingorganizationthatreceivesapprovaltoissuecertificatesof
receiptshallfileanapplicationforrecertificationonanannualbasis.Suchapplicationfor
recertificationshallbeintheformandmannerprescribedbytheBoardandshallinclude:

(1) certificationfromtheDirectororChiefExecutiveOfficeroftheorganizationthat
theorganizationhascompliedwiththeapplicablereportingrequirementsofthis
Section;

(2) acopyoftheorganizationsfederalform990orotherfederalformindicatingthe
taxstatusoftheorganizationforfederaltaxpurposes;

(3) certificationthattheorganizationusedatleast90%ofthequalifiedcontributions
toprovidescholarshipstoeligiblestudents;

(4) certificationthattheorganizationdepositedandheldallqualifiedcontributions
andanyincomederivedfromqualifiedcontributionsaredepositedandheldinan
accountthatisseparatefromtheorganizationsoperatingorotherfundsuntil
suchqualifiedcontributionsorincomearewithdrawnforuse;and

(5) acopyoftheorganizationscurrentfinancialstatements.

(b) TheBoardmayrevoketheapprovalofascholarshipgrantingorganizationtoissue
certificatesofreceiptuponafindingthattheorganizationhasviolatedthisSection.These
violationsshallinclude,butnotbelimitedto,anyofthefollowing:

(1) failuretomeettherequirementsofthisAct;

(2) failuretomaintainfullandadequaterecordswithrespecttothereceiptof
qualifiedcontributions;

(3) failuretosupplysuchrecordstotheDepartment;or

(4) failuretoprovidenoticetotheDepartmentoftheissuanceofcertificatesof
receiptpursuanttoSection35.

3

(c) Withinfivedaysofthedeterminationrevokingapproval,theBoardshallprovidenoticeof
suchrevocationtothescholarshipgrantingorganization.

Section30.ContributionAuthorizationCertificates.

(a) Ataxpayershallnotbeallowedacreditpursuanttothissectionforanycontributiontoa
scholarshipgrantingorganizationthatwasmadepriortotheDepartmentsissuanceofa
contributionauthorizationcertificateforsuchcontributiontothetaxpayer.

(b) Priortomakingacontributiontoascholarshipgrantingorganization,thetaxpayershall
applyforacontributionauthorizationcertificate.

(c) Ataxpayerthatwantstomakemorethanonecontributiontoascholarshipgranting
organizationmustmakeaseparateapplicationforeachsuchcontributionauthorization
certificate.TheapplicationshallbeintheformandmannerprescribedbytheDepartment,
providedthatsuchapplicationincludes:

(1) thetaxpayersnameandaddress;

(2) thenameandaddressofeachscholarshipgrantingorganizationthatwillreceivea
contributionfromthetaxpayer;

(3) theamountthetaxpayerwillcontributetoeachscholarshipgrantingorganization;
and

(4) anyotherinformationtheDepartmentdeemsnecessary.

(d) TheDepartmentmayallowtaxpayerstomakemultipleapplicationsonthesameform,
providedthateachapplicationshallbetreatedasaseparateapplication.

(e) TheDepartmentshallissuecreditauthorizationcertificatesonafirst-comefirst-serve
basisbaseduponthedatethattheDepartmentreceivedthetaxpayersapplicationforthe
certificate.

(f) Ataxpayersaggregateauthorizedcontributionamountaslistedononeormore
authorizedcontributioncertificatesissuedtothetaxpayershallnotexceedthelesserof:

(1) 100%ofthetaxpayerstaxliabilityforthetaxableyear;

(2) 1%ofthecreditcapsetforthinSection10forthetaxableyear;or

(3) theaggregateoftheamountslistedonthetaxpayersapplicationssubmittedin
accordancewiththisSection.

(g) Eachcontributionauthorizationcertificateshallstate:

(1) thedatesuchcertificatewasissued;

(2) thedatebywhichtheauthorizedcontributionslistedinthecertificatemustbe
made,whichshallbe60daysfromthedateoftheissuanceofacredit
authorizationcertificate;

4
 (3) thetaxableyearforwhichcreditmaybeclaimedbythetaxpayer;

(4) thetotalamountofauthorizedcontributions;

(5) thenameandaddressofthescholarshipgrantingorganizationtowhichthe
taxpayermaymakeanauthorizedcontributionandtheamountoftheauthorized
contribution;and

(6) anyotherinformationtheDepartmentdeemsnecessary.

(h) Creditauthorizationcertificatesshallbemailedtotheappropriatetaxpayerswithin3
businessdaysoftheirissuance.

(i) Within15daysoftheissuanceofacontributionauthorizationcertificate,theDepartment
shallnotifythescholarshipgrantingorganizationoftheissuanceofthecontribution
authorizationcertificatetothetaxpayer.Thenotificationshallinclude:

(1) thetaxpayersnameandaddress;

(2) thedatesuchcertificatewasissued;

(3) thedatebywhichtheauthorizedcontributionlistedinthenotificationmustbe
contributed;

(4) theamountoftheauthorizedcontribution;and

(5) anyotherinformationthattheDepartmentdeemsnecessary.

(j) TheDepartmentshallmaintainonitswebsitearunningtotaloftheamountofcreditsfor
whichtaxpayersmaymakeapplicationsforcontributionauthorizationcertification.The
runningtotalshallbeupdatedeverybusinessday.

Section35.CertificatesofReceipt.

(a) Noscholarshipgrantingorganizationshallissueacertificateofreceiptforany
contributionmadebyataxpayerunlessthatscholarshipgrantingorganizationhasbeen
approvedtoissuecertificatesofreceiptpursuanttoSection15.

(b) Noscholarshipgrantingorganizationshallissueacertificateofreceiptforacontribution
madebyataxpayerunlessthescholarshipgrantingorganizationhasreceivednoticefrom
theDepartmentthatitissuedacreditauthorizationcertificatetothetaxpayerforthe
contribution.

(c) Ifataxpayermakesacontributiontothescholarshipgrantingorganizationsetforthonthe
creditauthorizationcertificateissuedtothetaxpayerbytheDepartmentpriortothedate
bywhichtheauthorizedcontributionshallbemade,thescholarshipgrantingorganization
shall,within30daysofreceiptoftheauthorizedcontribution,issuetothetaxpayera
writtencertificateofreceipt.

(d) AtaxpayermayrescindallorpartofataxcreditapprovedunderSection30.Theamount
rescindedshallbecomeimmediatelyavailabletoanothertaxpayeronafirst-come,
first-servebasisasapprovedbytheDepartmentoncetheoriginaltaxpayerreceives
noticefromtheDepartmentthattherescindmenthasbeenaccepted.

5

(e) Ifataxpayerfailstomakeacontributiontothescholarshipgrantingorganizationlistedin
theauthorizedcontributioncertificateissuedtothetaxpayerinanamountequaltothe
authorizedcontributionamountlistedinsuchcertificatepriortothedatebywhichsuch
authorizedcontributionisrequiredtobemade,thetaxpayershallnotbeentitledtoa
certificateofreceipt.

(f) Eachcertificateofreceiptshallstate:

(1) thenameandaddressoftheissuingscholarshipgrantingorganization;

(2) thetaxpayersnameandaddress;

(3) thedateforeachqualifiedcontribution;

(4) theamountofeachqualifiedcontribution;

(5) thetotalqualifiedcontributionamount;and

(6) anyotherinformationthattheDepartmentmaydeemnecessary.

(g) Upontheissuanceofacertificateofreceipt,theissuingscholarshipgrantingorganization
shall,within30daysofissuingthecertificateofreceipt,providetheDepartmentwith
notificationoftheissuanceofsuchcertificateintheformandmannerprescribedbythe
Departmentprovidedthatsuchnotificationshallinclude:

(1) thetaxpayersnameandaddress;

(2) thedateoftheissuanceofacertificateofreceipt;

(3) thequalifiedcontributiondateordatesandtheamountscontributedonsuch
dates;

(4) thetotalqualifiedcontributionlistedonsuchcertificates;

(5) theissuingscholarshipgrantingorganizationsnameandaddress;and

(6) anyotherinformationtheDepartmentmaydeemnecessary.

(h) EachscholarshipgrantingorganizationthatreceivesnotificationfromtheDepartment
underSection30regardingtheissuanceofacontributionauthorizationcertificatetoa
taxpayershall,within30daysoftheexpirationdateforsuchauthorizedcontribution,
providenotificationtotheDepartmentforeachtaxpayerthatfailed,inwholeorinpart,to
maketheauthorizedcontributiontothescholarshipgrantingorganizationintheformand
mannerprescribedbytheDepartment,providedthatsuchnotificationshallinclude:

(1) thetaxpayersnameandaddress;

(2) thedatethatthecontributionauthorizationcertificatewasissued;

(3) theauthorizedcontributionamountsetforthonsuchcertificate;

(4) theamountofanyqualifiedcontributionmadebythetaxpayer;

6
 (5) theamountoftheauthorizedcontributionforwhichthetaxpayerdidnotmakea
contribution;

(6) thescholarshipgrantingorganizationsnameandaddress;and

(7) anyotherinformationtheDepartmentmaydeemnecessary.

(i) AnyamountsforwhichtheDepartmentreceivesnotificationofthenon-issuanceofa
certificateofreceiptshallbeimmediatelyaddedtothecapprescribedinSection10.

Section40.Reports.

(a) EachscholarshipgrantingorganizationmustprovidetotheDepartmentareportonthe
resultsofafinancialauditofitsaccountsandrecordsconductedbyanindependent
certifiedpublicaccountantinaccordancewithauditingstandardsgenerallyacceptedin
theUnitedStates,governmentauditingstandardsandrulespromulgatedbythe
Department.Theauditreportmustincludeareportonfinancialstatementspresentedin
accordancewithgenerallyacceptedaccountingprinciples.Auditreportsmustbe
providedtotheDepartmentwithin180daysaftercompletionofthescholarshipgranting
organizationsfiscalyear.TheDepartmentshallreviewallauditreportssubmitted
pursuanttothisparagraph.TheDepartmentshallrequestanysignificantitemsthatwere
omittedinviolationofaruleadoptedbytheDepartment.Theitemsmustbeprovided
within45daysafterthedateofrequest.Ifascholarshipgrantingorganizationdoesnot
complywiththeDepartmentsrequest,theDepartmenthasthepowertorevokethe
scholarshipgrantingorganizationsabilitytohandoutcertificatesofreceipt.

(b) OnorbeforeJanuary31foreachcalendaryear,eachscholarshipgrantingorganization
thatissuedoneormorecertificatesofreceiptshallreporttotheDepartmentthenumber
ofsuchcertificatesissuedandtheaggregateamountofqualifiedcontributionsmadeto
theorganizationduringtheimmediatelyprecedingcalendaryear.

(c) Ascholarshipgrantingorganizationthatreceivesqualifiedcontributionsshallreporttothe
Department,onaformprescribedbytheDepartmentbyJanuary31ofeachcalendar
year.Thereportshallinclude:

(1) thenameandaddressofthemembersandthechairpersonofthegoverning
boardoftheorganization;

(2) thetotalnumberofcertificatesofreceiptissuedduringtheimmediatelypreceding
calendaryear;

(3) thetotaldollaramountofqualifiedcontributionsreceived,assetforthinthe
certificatesofreceiptissuedduringtheimmediatelyprecedingcalendaryear;

(4) thetotalnumberofeligiblestudentsutilizingscholarshipsfortheimmediately
precedingcalendaryearandtheschoolyearinprogressandthetotaldollarvalue
ofthescholarships;

(5) thenameandaddressofeachqualifiedschoolatwhichscholarshipsarecurrently
beingutilized,detailingthenumberofeligiblestudentsandthetotaldollarvalue
ofscholarshipsbeingutilizedateachqualifiedschool;and

(6) anyadditionalinformationrequestedbytheDepartment.

7

(d) OnorbeforethelastdayofMayforeachcalendaryear,fortheimmediatelypreceding
calendaryear,theDepartmentshallsubmitawrittenreporttotheGovernor,theSenate
President,theSpeakeroftheHouse,theSenateMinorityLeader,theHouseMinority
Leader,theChairmanoftheSenateRevenueCommittee,andtheChairmanoftheHouse
RevenueCommitteeregardingthisAct.Thereportshallcontainstatisticalinformation,by
taxtype,regardingthenumberofapplicationsreceived,thenumberofcontribution
authorizationcertificatesissuedtoscholarshipgrantingorganizations,andthe
geographicaldistributionofscholarshipgrantingorganizationsforwhichcontribution
authorizationcertificateswereissued.

Section45.ScholarshipGrantingOrganizationResponsibilities.

(a) Ascholarshipgrantingorganizationwhoseowneroroperatorinthelastsevenyearshas
filedforpersonalbankruptcyorcorporatebankruptcyinacorporationofwhichheorshe
ownedmorethantwentypercentshallnotbeeligibletoprovidescholarships.

(b) Ascholarshipgrantingorganizationmustnothaveanowneroroperatorwhoownsor
operatesaneligibleprivateschoolorhasarelativewhoisapaidstafforboardmember
ofparticipatingprivateschool.

(c) Ascholarshipgrantingorganizationmustcomplywiththeanti-discriminationprovisionsof
42U.S.C.s.2000d.

(d) Beforegrantingascholarshipforanacademicyear,allscholarshipgrantingorganizations
mustdocumenteachstudentseligibilityfortheacademicyear.

(e) Ascholarshipgrantingorganizationmayonlygivescholarshipstoeligiblestudents.

(f) Ascholarshipgrantingorganizationmustonlygivescholarshipstoeligiblestudentsinthe
appellatecourtdistrictitisphysicallylocatedin.

(g) Ascholarshipgrantingorganizationmustallowaneligiblestudenttoattendanyqualified
schoolifresourcesareavailable.

(h) Ascholarshipgrantingorganizationmustgivefirstprioritytoeligiblestudentswho
receivedascholarshipfromascholarshipgrantingorganizationduringtheprevious
schoolyearandsiblingsofstudentscurrentlyreceivingascholarship.

(i) Ascholarshipgrantingorganizationmaynotgrantmulti-yearscholarships.

(j) Ascholarshipgrantingorganizationmustallowaneligiblestudenttotransfera
scholarshipduringaschoolyeartoanyotherparticipatingschoolofthecustodians
choice.Suchscholarshipswillbeprorated.

(k) ScholarshipsraisedviatheActmaybeawardedatthediscretionofthescholarship
grantingorganization.

(l) Ascholarshipgrantingorganizationmustdistributeperiodicscholarshippaymentsas
checksmadeouttothestudentscustodianandmailedtotheparticipatingschoolwhere
thestudentisenrolled.Thecustodianmustendorsethecheckbeforeitcanbedeposited.

8
 (m) WiththepriorapprovaloftheDepartment,ascholarshipgrantingorganizationmay
transferfundstoanotherscholarshipgrantingorganizationifadditionalfundsarerequired
tomeetscholarshipdemandsatthereceivingscholarshipgrantingorganization.All
transferredfundsmustbedepositedbythereceivingscholarshipgrantingorganization
intoitsscholarshipaccounts.Alltransferredamountsreceivedbyanyscholarship
grantingorganizationmustbeseparatelydisclosedtotheDepartment.

(n) Anindividualtaxpayerdonatingtoascholarshipgrantingorganizationmaydirecttheir
donationtoaparticularschool,butnotaparticularstudent.Acorporatetaxpayer
donatingtoascholarshipgrantingorganizationshallnotdesignateitsdonationfor
scholarshipstoasubsetofparticipatingschoolsortoparticularstudents.Scholarship
grantingorganizationsmustusedonationsfromcorporatetaxpayerstoprovide
scholarshipsforeligiblestudentstoattendanyparticipatingschoolofthecustodians
choosing,andmaynotlimitscholarshipsforattendanceattheonlysubsetofparticipating
schools.

Section50.StateBoardResponsibilities.

(a) TheBoardmustestablishawebsitethatprovidescustodianswithinformationon
participationintheprogram.

(b) TheBoardmustestablishaprocessbywhichindividualsmaynotifytheBoardofany
violationbyaparent,non-publicschool,orpublicschoolofstatelawsrelatingtoprogram
participation.TheBoardshallconductaninquiryofanywrittencomplaintormakea
referraltotheappropriateagencyforinvestigation,ifthecomplaintissignedbythe
complainantandislegallysufficient.Acomplaintislegallysufficientifitcontainsultimate
factsthatshowthataviolationofanyruleadoptedbytheBoardhasoccurred.Inorderto
determinelegalsufficiency,theBoardmayrequiresupportinginformationor
documentationfromthecomplainant.

(c) TheBoardmustmaintainalistofnationallynorm-referencedtestsidentifiedforpurposes
ofsatisfyingthetestingrequirementinSection60.Thetestsmustmeetindustry
standardsofqualityinaccordancewithBoardrule.Studentsataparticipatingnon-public
schoolmaybeassessedusingstatewideassessmentsiftheadditionofthosestudents
andtheschooldoesnotcausethestatetoexceeditscontractualcapsforthenumberof
studentstestedandthenumberoftestingsites.Thestateshallprovidethesame
materialsandsupporttoaparticipatingnon-publicschoolthatitprovidestoapublic
school.Anon-publicschoolthatchoosestoadministerstatewideassessmentsshall
followtherequirementssetforthinSection2-3.64,rulesadoptedbytheBoardto
implementthosesections,anddistrict-leveltestingpoliciesestablishedbythedistrict
schoolboard.

(d) TheBoardshallselectanindependentresearchorganization,whichmaybeapublicor
privateentityoruniversity,towhichparticipatingnon-publicschoolsmustreportthe
scoresofscholarshipstudentsonthenationallynorm-referencedtestsorthestatewide
assessmentsadministeredbythenon-publicschoolingrades3through11.The
independentresearchorganizationmustannuallyreporttotheBoardontheyear-to-year
learninggainsofscholarshipstudentsonastatewidebasis.Thereportshallalsoinclude,
totheextentpossible,acomparisonoftheselearninggainstothestatewidelearning
gainsofpublicschoolstudentswithsocioeconomicbackgroundssimilartothoseof
studentsparticipatinginthescholarshipprogram.Theannualreportshallbepublishedby
theBoardonitswebsite.

9
 (e) Thesharingandreportingofstudentlearninggaindataunderthisparagraphmustbein
accordancewithrequirementsoftheFamilyEducationalRightsandPrivacyAct.All
partiesmustpreservetheconfidentialityofsuchinformationasrequiredbylaw.The
annualreportmustnotdisaggregatedatatoalevelthatwilldisclosetheacademiclevel
ofindividualstudents.

Section55.SchoolDistrictResponsibilities.

(a) Allschooldistrictsshallinformallhouseholdswitheligiblestudentsinthedistrictofthe
studentseligibilitytoapplyforascholarshiponanannualbasis.

(b) UpontherequestoftheBoard,aschooldistrictshallcoordinatewiththeBoardtoprovide
toaparticipatingnon-publicschoolthestatewideassessmentsadministeredunder
Section2-3.64andanyrelatedmaterialsforadministeringtheassessments.Aschool
districtisresponsibleforimplementingtestadministrationsforstatewideassessmentsat
anon-publicschool,includingtheprovisionoftrainingfornon-publicschoolstaffontest
securityandassessmentadministrationprocedures;distributionoftestingmaterialstoa
non-publicschool;retrievaloftestingmaterialsfromanon-publicschool;provisionofthe
requiredformatforanon-publicschooltosubmitinformationtotheschooldistrictfortest
administrationandenrollmentpurposes;andprovisionofanyrequiredassistance,
monitoring,orinvestigationataparticipatingnon-publicschool.

Section60.Non-PublicSchoolResponsibilities.

(a) Anon-publicschoolthatacceptsscholarshipstudentsmustdoallofthefollowing:

(1) Providetoascholarshipgrantingorganization,uponrequest,alldocumentation
requiredforthestudentsparticipation,includingthenon-publicschoolscostand
studentsfeeschedules.

(2) Beacademicallyaccountabletothecustodianformeetingtheeducationalneeds
ofthestudentby:

(a) Ataminimum,annuallyprovidingtothecustodianawrittenexplanationof
thestudentsprogress.

(b) Annuallyadministeringormakingprovisionforstudentsparticipatinginthe
scholarshipprogramingrades3through11totakeoneofthenationally
norm-referencedtestsidentifiedbytheBoardorthestatewide
assessmentsunderSection2-3.64oftheSchoolCode.Studentswith
disabilitiesforwhomstandardizedtestingisnotappropriateareexempt
fromthisrequirement.Aparticipatingnon-publicschoolmustreporta
studentsscorestothecustodian.Aparticipatingnon-publicschoolmust
annuallyreportbyAugust15thescoresofallscholarshipstudentstothe
independentresearchorganizationdescribedinSection50.

(c) Cooperatingwiththescholarshipstudentwhosecustodianchoosesto
havethestudentparticipateinthestatewideassessmentsunderSection
2-3.64oftheSchoolCodeor,ifaparticipatingnon-publicschoolchooses
toofferthestatewideassessments,administeringtheassessmentsatthe
school.

10
 (3) Aparticipatingnon-publicschoolmustsubmitarequestinwritingtotheBoardby
June1ofeachyearinordertoadministerthestatewideassessmentsinthe
subsequentschoolyear.

(4) Theinabilityofanon-publicschooltomeettherequirementsofthissubsection
shallconstituteabasisfortheineligibilityofthenon-publicschooltoparticipatein
thescholarshipprogramasdeterminedbytheBoard.

Section65.Custodian&StudentResponsibilities.

(a) Thecustodianmustselectaqualifiedschoolandapplyfortheadmissionofhisorher
child.

(b) Thecustodianshallensurethatthestudentparticipatinginthescholarshipprogramtakes
thenorm-referencedassessmentofferedbytheparticipatingnon-publicschool.The
custodianmayalsochoosetohavethestudentparticipateinthestatewideassessments
underSection2-3.64oftheSchoolCode.Ifthecustodianrequeststhatthestudent
participatinginthescholarshipprogramtakestatewideassessmentspursuanttoSection
2-3.64oftheSchoolCodeandthenon-publicschoolhasnotchosentoofferand
administerthestatewideassessments,thecustodianisresponsiblefortransportingthe
studenttotheassessmentsitedesignatedbytheschooldistrict.

(c) Eachcustodianandeachstudenthasanobligationtocomplywiththequalifiedschools
publishedpolicies.

(d) Thecustodianshallauthorizethescholarshipgrantingorganizationtoaccessinformation
neededforincomeeligibilitydeterminations.

Section70.Recordkeepingandrulemaking.

(a) Eachtaxpayershall,foreachtaxableyearforwhichthetaxcreditprovidedforunderthis
sectionisclaimed,maintainrecordsofthefollowinginformation:(I)contribution
authorizationcertificatesobtainedunderSection30and(II)certificatesofreceipt
obtainedunderSection35.

(b) TheDepartmentisherebyauthorizedtopromulgateandadoptonanemergencybasis
regulationsnecessaryfortheimplementationofthissection.Suchregulationsshall
construetheprovisionsofthissectioninsuchamannerastoencouragequalified
contributions,providedthatsuchregulationsshallnotimposeanynewrequirementor
burdenontheeducationalprogram,instructionoractivitiesofapublicornon-public
school.

(c) Ifanyprovisionofthissectionortheapplicationthereoftoanypersonorcircumstancesis
heldinvalid,suchinvalidityshallnotaffectotherprovisionsorapplicationsofthesection
whichcanbegiveneffectwithouttheinvalidprovisionorapplication,andtothisendthe
provisionsofthissectionaredeclaredtobeseverable.

(35ILCS5/224new)

Section224.TheInvestinKidsTaxCredit.

(a) FortaxableyearsendingonorafterDec31,2017,eachtaxpayerforwhomataxcredithas
beenawardedbytheDepartmentundertheInvestinKidsActisentitledtoacredit
11
 againstthetaximposedundersubsections(a)and(b)ofSection201inanamountequal
totheamountawardedundertheInvestinKidsAct.

(b) Forpartners,shareholdersofsubchapterScorporations,andownersoflimitedliability
companies,iftheliabilitycompanyistreatedasapartnershipforpurposesoffederaland
Stateincometaxation,thecreditunderthisSectionshallbedeterminedinaccordance
withthedeterminationofincomeanddistributiveshareofincomeunderSection702and
704andsubchapterSoftheInternalRevenueCode.

(c) Thecreditmaynotbecarriedbackandmaynotreducethetaxpayersliabilitytolessthan
zero.Iftheamountofthecreditexceedsthetaxliabilityfortheyear,theexcessmaybe
carriedforwardandappliedtothetaxliabilityofthe5taxableyearsfollowingtheexcess
credityear.Thetaxcreditshallbeappliedtotheearliestyearforwhichthereisatax
liability.Iftherearecreditsformorethanoneyearthatareavailabletooffsettheliability,
theearliercreditshallbeappliedfirst.

(d) AtaxcreditawardedbytheDepartmentundertheInvestinKidsActmaynotbeclaimed
foranycontributionthatthetaxpayerhasorwillalsobeclaimingasafederaltax
deduction.

(e) ThisSectionisexemptfromtheprovisionsofSection250.

Section99.Effectivedate.ThisActgoesintoeffectimmediately.

12