Illinois Voters Weigh Federal Scholarship Tax Credit

Voters in 32 Illinois counties will be asked to weigh in on an education-related advisory question during the March primary election, focused on whether the state should participate in the Federal Scholarship Tax Credit program.
The federal initiative would allow K-12 students from households earning up to 300% of their area’s median income to qualify for education-related funding. Eligibility would extend to students attending public, private, religious, or home schools.
Funds could be used for a variety of qualified elementary and secondary education expenses, including tutoring, special-needs services, books, supplies, and tuition. Scholarship-granting organizations would administer the funds, with additional guidance expected from the U.S. Department of the Treasury.
Supporters note that the program differs from traditional voucher systems because it does not redirect funding away from Illinois public schools. Beginning in 2027, donors would be eligible for an annual $1,700 federal tax credit regardless of whether Illinois opts into the program. If the state does not participate, donations from Illinois taxpayers would instead support students in other states. At least 28 states have already taken steps toward joining the initiative.
Gov. J.B. Pritzker has not indicated whether he would allow donated funds to be used for Illinois students if the state participates. Results from the advisory questions could help guide state leaders as they consider whether to opt into the program.
Mailee Smith, vice president of policy and litigation at the Illinois Policy Institute, said: “This is something students in counties all over Illinois could benefit from. This program helps students at or below 300% of the median income level in their area, which means all low-income children in the state would be eligible for funding. It’s a win-win-win program: students get money, taxpayers get a tax credit, and it boosts academics at public schools, private schools, and homeschools. There are nearly as many reasons why Gov. Pritzker should join, as there are students in Illinois.”
The Illinois Policy Institute, based in Chicago, is an independent nonprofit think tank focused on policy analysis within the state. The organization emphasizes fiscal responsibility, government reform, and free-market principles, and researches issues including education, taxes, state budgets, and pensions.