County voters will be asked to approve tax credit referendum in 2026
by Randy Pierce • Voters in Madison County, when they go to the polls during the March 17, 2026 primary election, will be asked if they would agree with Illinois’ participation in a federal tax credit program that would provide funding support for a broad range of academic needs.
Placing this advisory referendum question on the next primary ballot was the subject of a resolution approved by the Madison County Board at its most recent meeting after being brought forward by its government relations committee, chaired by Jason Palmero of Glen Carbon, which had met earlier the same evening.
Designed to encourage donations to “Scholarship Grantee Organizations” (SGOs) for the benefit of kindergarten through high school senior students in public or private schools and those who are homeschooled, the program’s referendum question states it concerns contributions that would help pay for such necessities as tutoring, test preparation, therapies for students with disabilities, online materials, books, tuition and admission exam fees or other specific items, services and components of the education process.
As explained in the resolution, there is a federal scholarship dollar-for-dollar tax credit of up to $1,700 for individuals making donations to SGOs that is currently in place, but it is required that the state formally “opt-in” to participating in this program if students in Illinois are to directly receive the benefits of such contributions and that is the point of this referendum.
Further mentioned in the county legislation is that this program does not take any money away from public schools including that provided from the state and federal levels presently.
County Board member Alison Lamothe of Edwardsville had voted no on the referendum resolution as a member of the government relations but explained that she was reversing her position when the matter came down to a final vote before the full board, saying, “It really doesn’t seem to make sense to exclude Illinois students from the benefits of this law.”
County Board Chairman Chris Slusser, who brought this matter to the attention of Palmero for the consideration by the committee he chairs, explained that the program concerning these tax credits would begin on January 1, 2027, and provide benefits to low- to moderate- income families.
He cautioned that if Illinois, as represented by Governor J.B. Pritzker, chooses not to opt in to the program, “then kids in your state cannot take advantage” of it and those donations would be directed to students in other states.
The county board had to vote on this resolution in November so it could meet deadline requirements for placing items like this on the primary ballot. Slusser noted that there were about 20 of Illinois’ 100-plus counties considering or having taken similar action.
There was a similar program called “Invest in Kids,” that allowed similar tax credit for scholarship/education-related donations, “that went away a couple years ago,” Slusser added, when the state legislature decided not to renew/extend it.
The concept resurfaced as part of United States President Donald Trump’s “Big, Beautiful Bill.”
Lamothe, a staunch Democrat, commented at the government relations committee that “one of the things that gives me pause” about the referendum resolution was that it was part of the aforementioned Trump “bill” which includes things she objects to such as cutting Medicaid and Supplement Nutrition Assistance Program benefits, thus creating negative impacts on school children.
