1. a) Eligible matching funds must satisfy all of the following criteria:

   1. 1) Be provided to the grantee for general tourism promotional purposes in the designated service area;
   2. 2) Be identified in the grantee's Project Budget Plan for the applicable fiscal year;

2. 3) Be available for expenditure during the applicable grant term;

   1. 4) Be supported by grantee's records of deposit;

      1. 5) Be expended by the grantee solely for eligible tourism promotional activities and associated administrative costs; and

3. 6) Not be refunded to the provider of the match.

   1. b) Eligible Sources of Matching Funds. The following sources may be used as match for grant funds:
   2. 1) Local hotel/motel tax receipts;

4. 2) Membership dues;

   1. 3) Interest on local monies available for expenditure on tourism promotional activities;
   2. 4) Cash contributions meeting all requirements of subsection (a); and
   3. 5) Federal funds provided directly to the grantee for tourism promotional purposes that do not require match.
   4. c) Ineligible Sources and/or Expenditures of Matching Funds. These include, but are not limited to:

5. 1) In-kind contributions;

   1. 2) State or federal funds other than those allowed in subsection (b)(5);

6. 3) Monies used as match for other State or federal grants;

   1. 4) Penalties, fines, fees, or interest charges assessed as a result of late payment;

7. 5) Pass-through funds; and

   1. 6) Any purchase of alcoholic beverages.

Matching Funds. Each grantee must provide match for grant funds received under the Program. Match expenditures must be no less than 50% of the grant funds expended, as well as any interest earned on grant funds that is also expended, except that, during fiscal years 2021 and 2022, the Department shall require that any grantee shall provide matching funds equal to no less than 25% of the grant amount. [20 ILCS 605/605-705(b)] If a grantee fails to match any portion of the grant award in a given fiscal year, that portion of the grant shall be refunded to the Department in accordance with the terms of the Grant Agreement. In-kind contributions shall not be used to satisfy match requirements.

(Source: Amended at 46 Ill. Reg. 3113, effective February 10, 2022)