SR0081 97TH GENERAL ASSEMBLY

SR0081 LRB097 10635 GRL 51033 r

SENATE RESOLUTION

WHEREAS, Economic growth and increased opportunity are of utmost importance in this current economic downturn; and

WHEREAS, New commercial, residential, and affordable housing development plays an important role in stimulating economic growth, job creation, and infrastructure and environmental improvements in the State of Illinois; and

WHEREAS, New real estate development, especially in the commercial, residential, and affordable housing fields, plays an important role in maintaining property values and in maintaining the financial stability of units of government at all levels throughout the State of Illinois; and

WHEREAS, Many public pensions have suffered decreases in the value of their investment portfolios; many of those portfolios have investments in real estate partnerships; and

WHEREAS, Public-private partnerships play a key role in encouraging and accelerating commercial, residential, and affordable housing development projects, thereby helping to improve our nation's communities; and

WHEREAS, There is an inherent risk associated with commercial, residential, and affordable housing development projects; and

WHEREAS, Partnerships are widely used in real estate projects in order to provide flexibility in allocating risks and potential rewards in real estate projects; and

WHEREAS, Current legislative proposals in Congress would re-characterize carried interest, currently treated as capital gains, as ordinary income, thereby discouraging real estate partnerships from investing in Illinois; this proposal could also depress economic activity across our State and jeopardize the stability of property values and the value of any pension funds which may be invested in such real estate partnerships; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we respectfully urge the United States Congress and the President of the United States to maintain the current capital gains tax treatment or classification for tax purposes of promoted or carried interest used by real estate partnerships; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and each member of the Illinois congressional delegation.