IVCA Provides Updates for State Legislative Issues – 5/14/2025

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

Wednesday, May 14, 2025

IVCA TAX MEASURE IN CONSIDERATION

IVCA’s legislative efforts this year have included adding a provision to the Illinois Income Tax Code which would prevent some taxpayers from being taxed twice on the same income. This is related to the work we’ve done in recent years to better define an investment partnership and Illinois Department of Revenue rulings after that change. The House bill HB 1396 passed House Revenue unanimously and was then held for further consideration; the Senate version SB 145 was heard in the Senate Revenue Committee with no objections stated, and no votes taken. It has been our expectation that this provision would be folded into a larger, omnibus revenue package, and that is the work we’re focused on during the final weeks of the session, scheduled to adjourn May 31.

GLOOMY REVENUE FORECAST

Legislators and the governor’s office are trying to assemble a budget for FY26 while facing weaker revenue collections and uncertainty from the federal government.

Crain’s | Pritzker budget team slashes state’s revenue forecast by $536 million: Among the culprits: $351 million less in corporate income taxes because of a lower forecast for corporate profits; and $289 million less in individual income taxes because of recently reduced forecasts of employment, lower wages and salaries growth, and lower estimated stock market performance. The new budget forecast also predicts $150 million less in sales taxes and $70 million less from the federal government

WILL TRANSIT REFORM LEAVE THE STATION?
One of the biggest budget pressures is a $750M ticket for the Chicagoland mass transit systems:
Senate President Don Harmon:
I would say that even if we tackle the reforms, I don’t know that there’s going to be a check cut on May 31st to the transit agencies. We are going to need to hold them accountable to reinvent the system so that it serves the people that we all represent who work for you all.

POLITICS
Illinois State Senator and IVCA ally Laura Fine is running to replace U.S. Rep. Jan Schakowsky in the 9th district. Illinois State Senator Robert Peters announced for the 2nd district seat after incumbent Rep. Robin Kelly announced for U.S. Senate. Much more to come including whether Governor JB Pritzker runs for a third term in 2026.