Property Tax Relief Grant
Property Tax Relief Grant supports Illinois school districts by partially replacing abated local property tax revenue with state funds to reduce the tax burden on local taxpayers.
Funder: Illinois State Board of Education
Due Dates: January 13, 2027 (Application) | March 30, 2027 (County abatement resolution) | April 15, 2027 (Certification to ISBE)
Funding Amounts: $48,741,500 available for FY 2027; one-year grants partially replace abated property taxes
Summary: Supports Illinois school districts in lowering local property tax bills by replacing a portion of abated tax revenue with state funding.
Key Information: Participating districts must abate taxes for three consecutive years to retain the grant in their Base Funding Minimum.
Description
The Property Tax Relief Grant (PTRG), administered by the Illinois State Board of Education (ISBE), helps school districts with high tax rates relative to other districts lower the property tax burden on local taxpayers. Created through Evidence-Based Funding and subsequently modified by legislation, the program replaces a portion of foregone local tax revenue with state funds rather than fully compensating districts for their abatements.
Districts receive priority based on their Adjusted Operating Tax Rate relative to the average for their organization type: unit, elementary, or high school. Abatement and grant calculations also account for property values and local capacity, with the local capacity adjustment providing greater tax relief to under-resourced districts. Awards can become part of a district’s future Base Funding Minimum, subject to the three-consecutive-year abatement requirement beginning in FY 2027.
