The Illinois Department of Human Services (IDHS), through the Office of Workforce Development and the Bureau of Employment and Training, is offering funding under the HCD Special Project Contracts for the Tax Assistance Program. This program aims to provide free tax preparation services to low-income individuals, particularly Illinois Department of Human Services (IDHS) customers. Additionally, it includes an educational component on tax credits such as the Federal and State Earned Income Tax Credits (EITC). The program intends to serve at least 12,000 taxpayers who earn below 200% of the federal poverty level.

The funding opportunity provides up to two awards, with a total estimated program funding of $550,000. Individual awards range from $225,000 to $550,000. The funding source is the state, and no cost-sharing or matching is required. Indirect costs are allowed, but applicants must comply with the Illinois Indirect Cost Rate Election System (ICRES) requirements. The application period opens on March 19, 2025, and closes on April 21, 2025, at 11:59 PM Central Time. The anticipated award announcement is on May 15, 2025, with the program set to begin on July 1, 2025, and run through June 30, 2027.

Eligible applicants include private, nonprofit community-based organizations with 501(c)(3) status and public community-based organizations, including units of local government. Applicants must be registered and prequalified with the State of Illinois through the Grantee Portal and meet other mandatory requirements such as active SAM.gov registration, compliance with Illinois Secretary of State requirements (if applicable), and absence from the Illinois Stop Payment List and the SAM.gov Exclusion List. Additionally, applicants must demonstrate at least five years of experience providing tax preparation assistance and training services.

The application requires submission of several components, including a uniform application for state grant assistance, a program narrative, a budget submitted via the CSA system, a conflict of interest disclosure, and a current W-9 form. Applications must be sent electronically to DHS.ETNOFO@Illinois.gov and will be reviewed based on merit. Evaluation criteria include an executive summary (5 points), need assessment (15 points), agency qualifications and capacity (35 points), program quality and design (35 points), and budget and budget narrative (10 points).

Performance measures include ensuring that 100% of tax returns completed serve individuals below 200% of the federal poverty level, timely submission of all required reports, service provision across diverse geographic locations, and outreach efforts to underserved communities. The awarded agencies must also demonstrate strong community partnerships, effective volunteer recruitment, and compliance with IDHS reporting and financial standards.

For inquiries, applicants may contact Charles Hopkins at DHS.ETNOFO@Illinois.gov or (217) 299-8295. The IDHS website will host a Q&A section, where questions can be submitted until five business days before the application deadline. Late applications will not be reviewed, and applicants must confirm receipt within 48 hours of submission. Awardees will receive a Notice of State Award, which must be signed before the final grant agreement is issued.