TRACY URGES PRITZKER TO OPT ILLINOIS INTO FEDERAL SCHOLARSHIP TAX CREDIT PROGRAM

QUINCY, IL — State Sen. Jil Tracy is renewing her call for Gov. JB Pritzker to opt Illinois into the new Federal Scholarship Tax Credit Program, saying the program would give families access to privately funded scholarships for a range of K-12 education expenses.

Tracy discussed the issue during an interview in Quincy on Tuesday. She has argued that Illinois should participate because the program is funded through voluntary private donations rather than a new state appropriation, and because the scholarships can support students in both public and nonpublic educational settings.

The federal program is scheduled to begin January 1, 2027. Under rules released by the U.S. Treasury Department and Internal Revenue Service, individual taxpayers may claim a nonrefundable federal income tax credit of up to $1,700 for qualifying cash contributions to participating Scholarship Granting Organizations. Married couples filing jointly may claim up to $3,400.

Participating states must elect to join the program and identify eligible scholarship organizations. According to the IRS, scholarship funds may be used for qualified elementary and secondary education expenses including private-school tuition, tutoring, special-needs services, books, supplies, computers and other qualifying costs connected with a student’s enrollment or attendance.

The IRS said October 1 that 30 states had opted into the program. Illinois has not joined. Tracy has been publicly urging the governor to opt in since at least July, saying the state should not turn away privately funded educational assistance.

Supporters describe the program as an expansion of educational choice without new state spending. Critics of the federal initiative have raised concerns that it could steer tax-supported incentives toward private and religious schools and weaken support for public education. The federal tax credit applies to qualifying contributions made in 2027 and later tax years.