IVCA Provides Updates for State Legislative Issues – 06/14/2023
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, June 14, 2023
VICTORY!
The Illinois definition of an “investment partnership” now includes investors in underlying partnerships! Thanks to the expertise of IVCA members and their legal, and accounting experts, we have crossed the finish line. Gains on the sale of portfolio companies will be exempt from Illinois tax.
Public Act 109-0009 is the Revenue Omnibus for the 2023 legislative session and includes on Pgs. 313-316.
The Illinois Department of Revenue has been an outstanding partner to IVCA and got us to a resolution of this long problematic interpretation of investment partnership. Big thanks to Team IDOR: David Harris, Colin Bowes-Carlson, Richard Sgro, Brian Fliflet, and Brian Stocker.
It must be stressed what a collaborative effort this required from IVCA members, their tax and legal teams, and the IVCA leadership which over the years consistently provided expert subject matter advice and counsel and also guided the negotiations toward an outcome acceptable to IVCA as well as the state and other stakeholders.
REQUIRED READING
The Civic Committee of the Commercial Club of Chicago has released a call to action on the public safety issues facing the City of Chicago and the State of Illinois which is causing policy makers to take notice. The committee’s historic role in the public discourse is well known and respected, in this instance the urgency of the issue and the contents of the report seem to be creating more engagement than a report on other issues might.
CIVIC COMMITTEE PUBLIC SAFETY REPORT
The Civic Committee announced five commitments where it believes business can have a significant impact on public safety:
1. Helping take community violence intervention (CVI) programs to scale
2. Hiring alumni of CVI programs with wraparound support services
3. Enhancing policing/criminal justice reforms
4. Hiring more broadly from underinvested communities
5. Investing directly in underinvested communities
REQUIRED READING PART 2
Readers of this column know we recommend taking a cup of coffee and looking over the monthly reports from the Commission on Government Forecasting and Accountability. It guides the thinking and sometimes even the decisions of state policy makers and is useful in understanding the state of state finances:
General Funds revenues bounced back nicely from April’s $1.8 billion decline with growth of $677 million in May, as compared to the same month the year prior. The May increases were experienced across the board, with the most significant growth coming from the Personal Income Tax and Federal Sources. Part of the reason for last month’s extensive declines was due to April having one less receipting day in FY 2023. This “lost” day was effectively made up in May, as the extra receipting day helped bolster this month’s revenue totals.
NEWS AND NOTES
Another public corruption trial heads to closing arguments and the jury:
The Chicago Bears continue to look for options (leverage?) at Arlington Heights, Naperville and now Waukegan for a new home: