Property Tax Relief Grant (PTRG)

The Property Tax Relief Grant (PTRG) is administered by the Illinois State Board of Education and was created with the passage of Evidence-Based Funding and subsequently modified by Public Act 101-0017. The program is intended to provide state grant support to qualifying Illinois school districts that abate local property taxes. Only Illinois school districts are eligible to apply; individual property owners cannot apply directly. The program is designed to help lower taxpayers' property tax bills in qualifying districts. The PTRG was not funded for FY 2026 and is therefore unavailable in FY 2026. The agency directs interested districts to check back in October 2026 for the FY 2027 PTRG. Districts are ranked for grant priority using the district Adjusted Operating Tax Rate divided by the Average Adjusted Operating Tax Rate for districts within the applicable organization type. Grants are awarded in the order of that ranking. Determination of the maximum possible abatement uses a two-step calculation. First, ISBE multiplies a district's Real Adjusted EAV by a factor based on organization type: 1 percent for a Unit district, 0.69 percent for an Elementary district, and 0.31 percent for a High School district. Second, that result is multiplied by the Local Capacity Percentage Multiplier, which equals 1 minus the Local Capacity Percentage. The resulting value is the Maximum Abatement amount. The grant amount is calculated from the Maximum Abatement using the applicable Property Tax Multiplier. Grant amounts do not equal 100 percent of the property tax abatement, and no district receives a grant that fully compensates it for the taxes abated. Funding for the PTRG is contingent on state appropriations. For the program to be available in a fiscal year, the Illinois General Assembly must increase appropriations for Evidence-Based Funding by more than $300 million. Any increase above $300 million is dedicated to PTRG, up to a maximum of $50 million. If insufficient funds remain to fully fund the initial possible grant amount for the final qualifying district, that district may receive a grant equal to the remaining PTRG appropriation, with its required abatement amount determined by dividing the possible grant amount by the Property Tax Multiplier. If eligible applicants decide not to participate and the program becomes undersubscribed, remaining funds are distributed as tier funding at the end of the fiscal year. There are no stated restrictions or requirements concerning which funds a district must abate or which fund must receive the grant proceeds. The PTRG is a one-year grant program, and districts must apply annually if they want consideration in future grant cycles. Beginning in FY20, however, a recipient must file the abatement for two years. A recipient must abate taxes in the year of the award and abate taxes in the same amount in the following tax year for the PTRG to be included in the district's Base Funding Minimum. Failure to make the second-year abatement results in removal of the PTRG from the district's Base Funding Minimum in following and future years. Prior-year recipients are not prohibited from applying again. For districts subject to PTELL, the aggregate levy in the year following receipt of a PTRG must include the tax relief the district provided in the previous taxable year. Applications are submitted through the IWAS system under Evidence-Based Funding. After logging into IWAS, an applicant selects System Listings, expands Reporting and Annual, and selects Evidence-Based Funding. A district that does not have Evidence-Based Funding listed must use the option to sign up for other systems and select Sign Up Now next to Evidence-Based Funding. Detailed application instructions are identified as beginning on slide 15 of the Property Tax Relief Grant Program Details presentation. Program resources also identify a County Clerk Certification of Abatement Form. A district can apply, receive notice that it is eligible, and then decide not to abate taxes or submit the final documents necessary to earn the grant award. ISBE cautions that an eligible applicant declining to accept a grant may prevent another district from participating. The source does not provide a specific FY 2027 application opening day, closing deadline, award floor, award ceiling, number of awards, or individual award notification date. It states that, when funds are appropriated for a fiscal year, the application period commences in October, and specifically instructs interested parties to check back in October 2026 for the FY 2027 PTRG. Future grant amounts remain subject to appropriations. Prior-year PTRG recipients will continue to receive their PTRG in their Base Funding Minimum even though the program itself was not funded in FY 2026. The program contact identified in the source is State Funding and Forecasting at the Springfield Office, telephone 217-782-0249.

Review the program details and webinar before applying and account for the requirement to abate taxes for two tax years. An applicant may decline after receiving notice of eligibility, but doing so may prevent another district from participating.