IVCA Provides Updates for State Legislative Issues – 2/19/2025

Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates

Wednesday, February 19, 2025

IVCA BILL UPDATE
The IVCA has introduced legislation to address a decision by the Illinois Department of Revenue restricting the use of a Foreign Tax Credit for certain partnership circumstances. This arises out of the IVCA work in recent years o update and expand the definition of an investment Partnership. HB 1396 is scheduled for a subject matter hearing (no votes) in the House Revenue Committee Thursday the 20th. House Revenue Hearing 2-20-25

GOVERNOR DELIVERS 2026 BUDGET ADDRESS

For months and months, the messaging in the Capitol has been of weak revenue projections and growing demands on state spending, which as the day of the budget arrived, receded in place of a rosier outlook:

Governor JB Pritzker gave his budget address today, and following are several links to the address and document:

FY 26 BUDGET IN BRIEF
ILLINOIS FY 26 PROPOSED BUDGET
BUDGET PICTURE BRIGHTENS
CRAIN’S ON FY 26 ILLINOIS BUDGET

CRAIN’S CHICAGO 2-19-2025 NOON

The budget situation in the coming year isn’t quite as dire as predicted but will put pressure on lawmakers to tighten their belts more than in past.

That’s the overall message as Gov. JB Pritzker today introduces a $55.4 billion spending plan for the fiscal year that starts July 1, up from $53.5 billion a year ago.

The fiscal pain that many had feared was lessened by a better-than-expected forecast from the Governor’s Office of Management and Budget, which now predicts an increase of more than $1.5 billion in what the state calls core revenue. The budget doesn’t include any tax increases, but nearly one-third of the revenue improvements come from one-time increases or shifts in expenditures In November, the budget office predicted revenue would remain flat, producing a $3.2 billion shortfall if expenses grew as expected, driven in part by a $1 billion increase in healthcare spending as federal COVID-relief funds ran out. Pritzker is proposing a lower increase in spending, in part by ending a program that provides medical coverage to noncitizens.

“We expect revenue to increase, but not at the type we’ve experienced in recent years,” the governor’s staff said during a briefing before Pritzker’s budget address