The Illinois Tuition Tax Credit: Who Gets the Credit? Who Pays the Consequences?

Illinois' Tuition Tax Credit: Where the Dollars Go

As mentioned earlier, the Illinois law disproportionately redirects state tax dollars to subsidize private schooling for more affluent taxpayers. The following two tables outline the fiscal impact of the law in each of its first two years:

Table 1: Fiscal Impact of Illinois Education Tax Credit, 2000 (filed in 2001)
Adjusted Gross Income Total Cost Number of Taxpayers Taking the Credit
Below $20,000 $1,777,291 9,402
$20,000-$40,000 $8,478,316 25,282
$40,000-$60,000 $10,854,014 30,032
$60,000-$80,000 $11,933,038 31,523
Above $80,000 $28,190,366 69,542
Totals: $61,233,025 165,781

Source: Illinois Department of Revenue and Research, June 2002. (Adjusted gross income is the figure reported on state income tax returns.)

Table 2: Fiscal Impact of Illinois Education Tax Credit, 2001 (filed in 2002)
Adjusted Gross Income Total Cost Number of Taxpayers Taking the Credit
Below $20,000 $1,916,986 10,663
$20,000-$40,000 $9,381,218 28,711
$40,000-$60,000 $11,668,123 32,947
$60,000-$80,000 $12,770,544 34,656
Above $80,000 $32,707,135 82,078
Totals: $68,444,006 189,055

Source: Illinois Department of Revenue and Research, February 2003.

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