IVCA Provides Updates for State Legislative Issues – 01/04/2023
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, January 4, 2023
LAME DUCK OPENS
Legislators and the governor are in Springfield this week for the final days of the current (102nd) Illinois General Assembly. The legislature meets today, Thursday and Friday, with a Saturday session on the books which is a candidate for being canceled.
Legislators are focused on a few big picture items, including legislation to ban guns used in street crime and in mass shooting incidents:
GUN CONTROL OPPOSITION UNMOVED
Governor JB Pritzker is pursuing his goal of establishing Illinois as a hub of the supply chain for and the production of electric vehicles
COFFEE IS FOR CLOSERS
IVCA BILL UNDER DISCUSSION
IVCA continues to pursue a clarification to the definition of an investment partnership found in Illinois statute. The issue stems from audit findings (disputed by IVCA) by the Illinois Department of Revenue which determined PE funds to be a “trade or business” and not an “investment partnership.” SB 2430 was introduced to correct that determination and to include PE funds in the category of partnerships which are not subject to taxation. This is essential to ensure that Illinois is not an outlier in imposing a tax at the entity level and to avoid creating a significant competitive disadvantage for Illinois funds.
The bill passed unanimously in the Illinois State Senate yet has stalled in the Illinois House. We are working to find a revenue vehicle moving during the Lame Duck session which could include the IVCA language.
LOOKING AHEAD
“If we can continue to run surpluses, then surpluses no longer become an extraordinary item,” he said. “Surpluses become a regular part of a budget that allows you either to invest in education or to cut taxes or to invest in maintaining human services in Illinois
PRITZKER PREVIEWS PLATFORM
After the governor is inaugurated on Jan 9 and the new legislature on Jan 11 we will learn who the new committee chairs will be, which members have been added to the leadership teams in each party and in each chamber, and the policy direction for the 103rd Illinois General Assembly.
With rosy revenue projections and substantial majorities in both chambers, the question is will Illinois Democrats take the opportunity to shore up pensions, put reserves away for future downturns, put more money into K-12 education, or what combination of those and other options will win the day?
The governor gives his Budget and State of the State Address Feb 15.