Illinois Scholarship Granting Organizations

What happened to Invest in Kids?

Invest in Kids was Illinois's state tax-credit scholarship program. The Illinois Department of Revenue says the program offered a 75 percent income tax credit for contributions to qualified scholarship granting organizations, and that it expired on December 31, 2023. A contribution after that date is not eligible for the credit. An unused credit from a 2023 contribution may be carried forward until 2028.

Where Illinois stands on the federal credit

Illinois's published status is No Decision Yet. Illinois has not opted in to the federal scholarship tax credit (26 U.S.C. §25F).

On October 1, 2026, the Governor's Office said it is reviewing the newly released Treasury and IRS guidance and will make a decision. Capitol Fax published the statement that day. The office said it will "make a decision grounded in what best supports working families, students, and our public schools." Chalkbeat reported the same statement on October 2, 2026. Illinois is not on the IRS participating-states list (as of October 22, 2026).

For 2027, a state must file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027. If the state does not submit that list, no SGO in that state qualifies.

If Illinois opts in and submits its list, a student may qualify when household income is at or below 300% of area median gross income:

• Grades K-12
• Scholarships can cover tuition, tutoring, educational supplies, and transportation
• Each scholarship granting organization sets its own additional criteria

Until Illinois files an election and submits that list, there is no Illinois list. An organization on another state's list funds students in that state.

How to apply

Illinois has not published an SGO list for the federal credit. If Illinois opts in and submits its list:

1. Find an SGO on Illinois's official list
2. Apply directly through that organization
3. Select a qualifying school that the organization will fund

Illinois's expired state tax credit

Invest in Kids was Illinois's state tax-credit scholarship program. It offered a 75% Illinois income tax credit for contributions to qualified scholarship granting organizations. The Illinois Department of Revenue says the program expired on December 31, 2023. A contribution after that date is not eligible for the credit. An unused credit from a 2023 contribution may be carried forward until 2028.

The federal tax credit

Illinois's published status is No Decision Yet. On October 1, 2026, the Governor's Office said it is reviewing the newly released Treasury and IRS guidance and will "make a decision grounded in what best supports working families, students, and our public schools."

A cash gift made on or after January 1, 2027 can qualify for a federal tax credit of up to $1,700 per taxpayer ($1,700 single, $3,400 married filing jointly) when it goes to an SGO on a participating state's list.

Illinois donors can still claim the federal credit by giving to an SGO on a participating state's list. The credit follows that organization's state list. A gift to an SGO listed only in Illinois cannot earn the federal credit until Illinois opts in.

For 2027, a state must file its election by January 1, 2027 (11:59 p.m.) and submit its SGO list by February 15, 2027. If the state does not submit that list, no SGO in that state qualifies.

How to donate

1. Choose an SGO on a participating state's list
2. Give cash on or after January 1, 2027. Do not direct the gift to a particular student
3. Claim the credit on the federal income tax return for the year of the gift