IVCA Provides Updates for State Legislative Issues – 1/22/2025
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, January 22, 2025
IVCA BILLS INTRODUCED
IVCA will be working to advance legislation in the Spring Session of 2025 to clarify the Foreign Tax Credit applicability decision from the Department of Revenue after the change in definition of a partnership included in the 2023 Revenue Omnibus. Please find attached the legislation:
SB 145 / CUNNINGHAM
HB 1396 / TARVER
We have two excellent sponsors who have knowledge of VC/PE issues and are effective at moving bills through the legislative process. We also have the strong support of the Taxpayers’ Federation of Illinois. The bills have not been assigned to committee, and are logical candidates for being included in an omnibus bill at the end of the session, rather than passing as stand-alone measures. We will keep you updated. For further information, if you or your tax experts want more information, please ask IVCA Executive Director Christie Pruyn for that opportunity and we will make that happen right away!
MADIGAN TRIAL GOES TO CLOSING ARGUMENTS
The jury in the public corruption trial of former Illinois House Speaker Michael J. Madigan this week hears closing arguments and should get the case for deliberation perhaps by Friday.
- Tribune | Closing arguments in landmark trial of ex-speaker Michael Madigan expected Wednesday: After jurors return Wednesday morning, U.S. District Judge John Robert Blakey will read them their lengthy instructions — they are likely to run more than 100 pages — before prosecutors begin their closing arguments. In total, the arguments are expected to last through the end of the week. Jurors are scheduled to begin deliberations Monday.
LEGISLATIVE CONVENES AND PENSION ISSUES
Illinois legislators created special committees to delve into solutions for the state’s pension plans and the cost to taxpayers for addressing the underfunded liabilities.
INTERVIEW QUOTES FROM CAPITOL FAX:
- Sen. Robert Martwick (D-Chicago) chairs the new Senate Pension Committee. He told me had read COGFA’s Tier 2 report and shared his thoughts. Note the final sentence…
I have so many thoughts about it, but what I would say is that it is a great starting point because it shows us the cost of doing the right thing. So often these discussions revolve around cost, debt, and credit ratings.
We completely lose sight of the fact that these are retirement benefits for the people that educate our children, keep us safe from crimes, and run towards danger. They provide care for children, the elderly and the poor. I believe that it should be a moral obligation of every employer to ensure that every employee is on a path to a secure retirement.
Tier 2 fails miserably. The accepted standard for retirement planning is that you should be prepared to replace 75% of your final salary and that should be able to grow with inflation. Tier 2 replaces 54% of your final salary (less if you earn more than the salary cap). On top of that, not only is your starting benefit 20% less than you need, but because of the growth at HALF the rate of inflation on a “simple” basis (CPI is calculated on a compound basis), your retirement gets worse and worse each year. Let me be crystal clear.
The benefits proposed in this legislation are not “too rich.” In fact, this benefit level is pretty close to what we should be offering our employees. It’s the right thing.
The unfortunate reality is that Illinois and Chicago are such financial disasters that we very well cannot afford to do the right thing.