Pritzker could unlock over $2 billion for Illinois students by opting into federal tax credit program
The rules allow married donors a tax credit of up to $3,400.
Illinois taxpayers could direct more than $2 billion in donated money to students in the state if Gov. J.B. Pritzker opts Illinois into the Federal Scholarship Tax Credit program.
The program, also known as the Education Freedom Tax Credit, provides a 1:1 tax credit for qualified donations to scholarship-granting organizations. Students in both public and private schools can use the money for education expenses such as tutoring, services for students with disabilities, tuition or school fees and books or supplies.
The U.S. Treasury Department recently confirmed that married taxpayers filing jointly can get the tax credit for up to $3,400 annually in donations while individual filers can get the credit for up to $1,700 annually.
An analysis from the Democrats for Education Reform says it’s plausible that 30% of eligible Illinois taxpayers could donate the full allowed amount. That could raise $2,087,575,860 for students.
Illinois could raise nearly $7 billion through the program if every eligible taxpayer in the state donated the full tax-credit eligible amount.
If Pritzker doesn’t opt Illinois into the program, Illinoisans’ donations will go to students in other states.
Taxpayers can donate to any government-approved scholarship-granting organization whether or not their governor has opted into the program. That means Illinois taxpayers can still claim the tax credit by donating to such organizations in other states.
There’s already been a campaign vying for Illinoisans’ donations: A billboard in south suburban Chicago near the Indiana border encouraged Illinoisans to donate to Indiana scholarship-granting organizations if Pritzker does not opt in.
So far, 32 states have indicated they will opt in, including seven controlled by Democrats.
Pritzker must decide by Jan. 1, 2027, whether to opt Illinois into the program and unlock potentially more than $2 billion for Illinois students.
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