Enacted 1999 • Launched 2000
Illinois provides a tax credit covering educational expenses for students in any private or public school, including tuition, books, and lab or activity fees. The credit is worth a maximum of $500.
Latest Stats (2008)
- Families Participating: 249,314
- Average Tax Credit Value: $290
Program Details
Program Type
Individual Tax Credit
Tax Credit Value
Parents receive a tax credit worth 25 percent of their expenditures after the first $250, up to a maximum credit of $500 per family. To get the maximum $500 credit, parents must spend $2,250 in educational expenses; they also must have a state tax liability of at least $500 because the credit is nonrefundable and thus cannot reduce an individual’s tax burden to less than zero.
Participation
In 2008, an estimated 249,314 families saved more than $72 million by claiming the education tax credit.
Student Eligibility
To be eligible, a student must be a resident of Illinois who is under 21 and enrolled full-time in kindergarten through 12th grade.
Legal Developments
In 1999, the Illinois Federation of Teachers, Illinois Education Association and the People for the American Way brought two lawsuits in state court arguing the program violated the First Amendment of the U.S. Constitution and religion clauses of the Illinois constitution. Illinois appellate courts upheld the programs and the Illinois Supreme Court refused to grant appeals. Toney v. Bower, 744 N.E.2d 351 (Ill. App. 4th Dist. 2001), appeal denied, 195 N.E.2d 573 (Ill. 2001); Griffith v. Bower, 747 N.E.2d 423 (Ill. App. 5th Dist. 2001), appeal denied, 755 N.E.2d 477 (Ill. 2001)
Rules & Regulations
- Who Qualifies?: Public / Private School
- Income Limit: None
- Jurisdiction Limit: Statewide
- Enrollment Cap: None
- Personal Credit/Deduction Cap: C=$500
Governing Statutes
35 ILCS5/Art.2, Sec.201 (m), Illinois Compiled Statutes
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