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IVCA Member Alert!

Update 06/25/2018

IVCA communicated specifically and strategically to key lawmakers to help keep the ill-advised legislation to impose a 20% privilege tax on capital gains earned by investment managers from proceeding.  As you remember in 2017 the Illinois Senate approved such a bill and sent it to the House, where it was approved by the House Revenue Committee but never called for a vote on the floor.  In 2018 bills introduced in the House and Senate were never even sent to a substantive committee for a hearing.  The General Assembly has adjourned and does not meet again until November.  NOW is a great time to contact your legislators, thank them for not proceeding on these bills, and ask them to avoid signing on as cosponsors.  Ask your legislators who support our position in opposition to these bills to speak loudly and clearly to their colleagues and leadership that a privilege tax would devastate the startup ecosystem in Illinois and hurt the state’s economy.

PRIVILEGE TAX ADDS COSPONSORS (5/09/18)

• Ann M. Williams, 
• Silvana Tabares, 
• Jaime M. Andrade, Jr., 
• Will Guzzardi, 
• Theresa Mah 
• William Davis.

This is not a significant number of cosponsors, and the legislators who have signed on may have been encouraged to do so by advocates for the bill to keep the issue alive. Which is why although we don’t see any immediate danger in the bill being revived for this legislative session, it appears to also be an issue which is never completely going away. Continue to let your Representative and Senator know you oppose both HB 4293 (Welch) and SB 3189 (Biss).

Members should explain this bill would:

• Destroy high-paying tech job growth in our state
• Drive high net worth tax payers out of the state
• Reverse the progress Illinois has made growing a vibrant technology economy
• Restrict capital opportunities for Illinois growth companies.
• Make Illinois an outlier on how Investment Managers are taxed relative to EVERY other state in the Union

Please, take action on this issue!  We know that constituents have the strongest opportunity to influence Representatives.

Don't know who your legislators are?  Check here

Find contact info for your legislators here.  Sample email, click here updated 1/24/18 for HB 4293. Sample email updated 2/21/18, click here for SB 3189.

Here is a letter written by one of our members:

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Supporting documentation for your email:

Crain’s IVCA Op Ed

WSJ Illinois Policy Institute Op Ed

Crain’s “Best Cities for Monster Returns

”Barron’s “A Simple Tale of Carried Interest”

Pitchbook's 2017 Venture Ecosystem FactBook: Chicago