IVCA Provides Updates for State Legislative Issues – 4/30/2025

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

Wednesday, April 30, 2025

CARRIED INTEREST GETS MENTIONED
It has been a year or two since this happened, but this week a tax advocacy organization released a list of revenue suggestions for Illinois lawmakers and policy makers to consider. Though we do not consider this to be a proposal that would gain momentum in the Capitol we will keep close watch.
ILLINOIS REVENUE ALLIANCE WISH LIST
Proposal: Place a 17% surcharge on all carried interest income by hedge fund and private equity executives, the percentage by which carried interest is under-taxed federally. This would eliminate these executives’ tax advantage while preserving the incentive to be a successful hedge fund manager. Revenue Estimate: $1.5 billion.

LEGISLATIVE SESSION TURNS FOR THE FINISH LINE
With the Kentucky Derby this weekend we’ll use a horse racing analogy to describe where the legislature is at this moment, and that is, making the clubhouse turn to the home stretch. Most routine bills have been heard in one chamber or the other, and now the work on the big issues really gets started. The Mayor of Chicago Brandon Johnson and Cook County President Toni Preckwinkle are among the elected officials visiting Springfield in search of financial support.

• WGN | Mayor Brandon Johnson heads to Springfield with a revised fiscal wish list: The mayor wants to generate $12.5 million through a tax on prepaid cellphone and calling cards, raise $27.5 million by extending the $5-a-month 911 surcharge, get more funding for the city’s unified shelter system and improve state reimbursement rates for various services including education.
• Meanwhile, Cook County Board President Toni Preckwinkle had this to say to Isabel today about consolidating the mass transit systems…
  Well, the first thing I have to say is our priority in this legislative session is transportation legislation… We believe that we have to have an integrated, comprehensive, accountable system, and that’s not where we are at the moment. So we really need support, both for changes in governance, in our system, and more resources. And RTA has estimated that the shortfall on the revenue side will be about $770 million in the coming year. So we’ve got challenges. […]
  NEWS AND NOTES
• Tribune | Gov. JB Pritzker dismisses as ‘ridiculous’ GOP accusations he urged violence in New Hampshire speech: “That’s ridiculous,” Pritzker said at an unrelated news conference when asked about the GOP response to his speech. “The peace that I’m talking about is making sure that they know at all times that the American public opposes the policies of congressional Republicans and of the White House.”