The federal rules provide the clearest roadmap yet for how the Federal Scholarship Tax Credit, also known as the Education Freedom Tax Credit, will operate.
The Education Freedom Tax Credit, also known as the Federal Scholarship Tax Credit, will give Illinois students access to donor money if the state opts into the program.
Under the program, donors can receive a federal tax credit of up to $1,700. That’s a direct subtraction from your tax bill, not just a deduction from your taxable income.
At least 28 states have already said they plan to opt into the Federal Scholarship Tax Credit program to let donors provide extra academic help to their students.
Illinois’ tax code stands in the way of the state’s economic competitiveness. The combination of high tax burdens and a poor tax structure contributes to the loss of jobs and investment to other states. From a place of former economic dominance, Illinois now ranks 45th in gross state product (GSP) growth over the past decade...