Illinois Gives Tax Credit Act: Incredible Tax Benefits for Illinois Donors

Did you know that as an Illinois resident, you may be eligible for a direct state income tax credit for certain charitable donations?

This is a true tax credit—not just a deduction—which means it reduces your Illinois state tax bill dollar for dollar.

This powerful incentive is made possible by the Illinois Gives Tax Credit Act, enacted to encourage charitable giving that strengthens communities across the state. The program has been extended through2026, offering donors a valuable opportunity to maximize the impact of their generosity.

How the Illinois Gives Tax Credit Works

The program provides a 25% Illinois income tax credit to individuals and businesses that contribute to permanent endowment funds held by Qualified Community Foundations.

Example:
A $10,000 charitable gift results in a $2,500 Illinois state tax credit.

Five Key Benefits for Illinois Donors

1. Significant tax relief—even for non‑itemizers

Many taxpayers no longer itemize deductions due to changes in federal tax law. The Illinois Gives Tax Credit is especially valuable because:

• The credit is available whether or not you itemize on your federal return
• It extends meaningful tax incentives to middle‑income taxpayers and standard     deduction filers, who often receive little or no tax benefit from     charitable giving

2. Charitable giving becomes more affordable—and more impactful

A single donation may:

• Qualify for the Illinois Gives state tax credit, and
• Still be eligible for a federal charitable deduction (for donors who itemize     federally)

This “stacking” of benefits can significantly reduce the net cost of giving for Illinois residents—allowing donors to do more good with fewer dollars out‑of‑pocket.

3. High credit limits with flexible carryforward options

The Act allows:

• Up to $100,000 per taxpayer per year in Illinois tax credits
      (equal to a $400,000 donation)
• Joint filers may claim up to $200,000 if both spouses are taxpayers
• Unused credits can be carried forward for up to five years, providing flexibility     for donors with fluctuating tax liability

4. Keeps charitable dollars working in Illinois communities

Eligible donations must support permanent endowment funds that:

• Are held in perpetuity, and
• Provide grants that exclusively benefit Illinois residents, charities, or projects

For Illinois donors, this means tax‑advantaged giving that:

• Strengthens nonprofits close to home, and
• Creates stable, long‑term funding rather than one‑time support

5. Fair access and strong program safeguards

To ensure equitable participation statewide:

• The program is capped at $5 million in tax credits per year
• 25% of credits are reserved for donations of $25,000 or less, protecting access for everyday Illinois donors
• Credits are issued on a first‑come, first‑served basis through the Illinois Department of Revenue’s MyTax Illinois system

Learn More

For additional details, visit the Illinois Gives Tax Credit Program website.

Supporting Will County Communities

The Will County Community Foundation is a Qualified Community Foundation, ensuring that more charitable dollars stay local and continue to support Will County—where One Family Illinois’ Lockport Village is located.

To learn how to contribute through the Will County Community Foundation, please contact:

Sheila Sassor or Kristen King
779‑285‑2173

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