Ryan Signs Education Tax Credit

CHICAGO -- Governor George H. Ryan today signed legislation creating an income tax credit for families who spend more than $250 a year in fees, expenses or tuition for the education of their children.

"Fairness and opportunity means extending a hand to all children in private and public schools and this bill does that by giving parents more of an opportunity to send their children to the school of their choice," Ryan said.

"More than 300,000 children now enrolled in private schools. We need to help these children and their families get a quality education. This new tax credit will be available to families who send their children to public and private schools."

The new tax credit is calculated as 25 percent of the qualified expenses, with a maximum credit of $500 per family. In order to qualify for the full credit, a family would have to incur education expenses of $2,250 in a year.

It is estimated that the education tax credit will save all parents between $50 million and $60 million annually.

The education tax credit legislation was sponsored by state senators Dan Cronin, R-Elmhurst, James "Pate" Philip, R-Addison, Doris Karpiel, R-Roselle, Walter Dudycz, R-Chicago, Ed Petka, R-Plainfield, and Thomas Walsh, R-Westchester.

In the House, the bill was sponsored by state representatives Kevin McCarthy, D-Orland Park, Edward Acevedo, D-Chicago, Mary Lou Cowlishaw, R-Naperville, Kathleen "Kay" Wojcik, R-Schaumburg, and Speaker Mike Madigan, D-Chicago.

The new tax credit takes effect immediately.