Tax Credit Scholarships

What are tax credit scholarships?

The Illinois Tax Credit Scholarship Program, “Invest in Kids,” provides a 75 percent Illinois state income tax credit to individuals and corporations that contribute money to a non-profit Scholarship Granting Organization (SGO). The SGOs award scholarships to eligible students from low-income families. Donors will use money already owed to the state (taxes) and donate it to a needs-based scholarships instead, all while receiving a 75 percent state tax credit.

Through this program:

  • An individual or corporation will receive a 75 percent credit on donations to an SGO. For example, if a person donates $100,000, they will receive a state tax credit of $75,000.
  • Individual donors can designate their donations to Covenant Christian School.
  • The credit can be rolled over for five years.
  • Donors are prohibited from receiving a federal tax deduction for these donations.
  • The program is capped at $100 million in donations, resulting in $75 million in total tax credits issued.

What is the process for donating?

Individual and corporate donors can reserve tax credits through mytax.illinois.gov by following these steps:

  1. Create a MyTax Illinois account on mytax.illinois.gov. Anyone applying for a scholarship tax credit is required to have an account. If you do not have one, the first step is requesting a Letter ID from the Illinois Department of Revenue.
    • CLICK HERE for step-by-step instructions on how to request a Letter ID.
    • CLICK HERE for step-by-step instructions on how to activate your my tax account.
  2. Apply for a tax credit on illinois.gov. Donors will need to provide the following information:
    • Region to which he/she plans to donate
    • Name of SGO to which he/she plans to donate (Covenant Christian School is partnering with ACSI and Empower Illinois)
    • Amount he/she plans to donate
    • CLICK HERE for step-by-step instructions on how to apply for the credit
  3. Donate to the SGO within 60 days of receiving your application approval and the Contribution Authorization Certificate.
  4. Provide certificate from the SGO to use tax credit when filing a 2019 return in 2020.

Interested in donating?

We are here to guide you through the process. Please contact us at vmason@covenantchristianaurora.org or 630.423.2132 to speak with the Tax Credit Scholarship Office at the school.