Invest in Kids Act FAQ
 
 
 What is it?
 
 A five-year pilot program for a donor-funded scholarship plan for private elementary and secondary school tuition.
 
 When does it start?
 
 Donations can be made beginning Jan. 1, 2018. Scholarships will be distributed for the 2018-2019 school year. 
 
 Who can donate?
 
 Individuals and corporations can contribute to scholarship funds and receive a 75 percent state income tax credit for donations up to $1 million.
 
 Is there a limit?
 
 The tax credits to be granted are capped at $75 million per year but there is not a limit on donations or scholarships that can be disbursed.
 
 Can donations be directed toward tuition for a specific school?
 
 Individual donors can direct their donations to a specific school or schools. Corporate donors cannot.
 
 Where are donations collected?
 
 Donations will be received and administered by Scholarship Granting Organizations — SGOs — sanctioned by the Illinois Department of Revenue. SGOs are 501(c)(3) non-profits that will exist primarily to oversee scholarships. They are required to use at least 95% of the qualified contributions received during a taxable year for scholarships.
 
 Can a school or group of schools be an SGO?
 
 No. The statute says an SGO “must not have an owner or operator who owns or operates a qualified school or has a family member who is a paid staff or board member of a participating qualified school.
 
 How many SGOs will there be and where will they be located?
 
 The Illinois Department of Revenue will decide the number and locations. The statute does not give a specific number of SGOs to be licensed but it does require that tax credits granted by SGOs “shall be awarded in a manner, as determined by the Department (of Reveue), that is geographically proportionate to enrollment in recognized nonpublic schools in Illinois.” If all $75 million in tax credits is not distributed by June 1, the rest will be granted on a first come, first served basis.
 
 Which students qualify for scholarships?
 
 Initially, students whose families earn 300 percent of the federal poverty level (FPL) or less ($73,800 for a family of four) will qualify. Once a student receives a scholarship, his or her family can earn up to 400 percent of the federal poverty level ($98,400 for a family of four). 
 
 Do the scholarships cover the full tuition at a private school? 
 For students whose household income is less than 185 percent of the federal poverty level, the scholarship will be 100 percent of tuition and necessary fees. For students whose household income is between 185 percent and 250 percent, scholarships will average 75 percent. For students whose household income is above 250 percent, scholarships will average 50 percent. 
 Is there a maximum amount that a student can receive? 
 The statute says “scholarships shall not exceed the lesser of (i) the statewide average operational expense per student among public schools or (ii) the necessary costs and fees for attendance at the qualified school.” The current statewide average operating expense per student is $12,280. Students identified as gifted, English language learners or eligible to receive services under the federal Individuals with Disabilities Education Act can receive scholarships of 1.1, 1.2 and 2 times the average operating expense, respectively.