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| 1 | HOUSE RESOLUTION
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| 2 | WHEREAS, Economic growth and increased opportunity are of | ||||||
| 3 | utmost importance in this current economic downturn; and
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| 4 | WHEREAS, New commercial, residential, and affordable | ||||||
| 5 | housing development plays an important role in stimulating | ||||||
| 6 | economic growth, job creation, and infrastructure and | ||||||
| 7 | environmental improvements in the State of Illinois; and
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| 8 | WHEREAS, New real estate development, especially in the | ||||||
| 9 | commercial, residential, and affordable housing fields, plays | ||||||
| 10 | an important role in maintaining property values and in | ||||||
| 11 | maintaining the financial stability of units of government at | ||||||
| 12 | all levels throughout the State of Illinois; and
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| 13 | WHEREAS, Many public pensions have suffered decreases in | ||||||
| 14 | the value of their investment portfolios; many of those | ||||||
| 15 | portfolios have investments in real estate partnerships; and
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| 16 | WHEREAS, Public-private partnerships play a key role in | ||||||
| 17 | encouraging and accelerating commercial, residential, and | ||||||
| 18 | affordable housing development projects, thereby helping to | ||||||
| 19 | improve our nation's communities; and | ||||||
| 20 | WHEREAS, There is an inherent risk associated with | ||||||
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| 1 | commercial, residential, and affordable housing development | ||||||
| 2 | projects; and
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| 3 | WHEREAS, Partnerships are widely used in real estate | ||||||
| 4 | projects in order to provide flexibility in allocating risks | ||||||
| 5 | and potential rewards in real estate projects; and
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| 6 | WHEREAS, Current legislative proposals in Congress, | ||||||
| 7 | including H.R. 4213, would re-characterize carried interest, | ||||||
| 8 | currently treated as capital gains, as ordinary income, thereby | ||||||
| 9 | discouraging real estate partnerships from investing in | ||||||
| 10 | Illinois; this proposal could also depress economic activity | ||||||
| 11 | across our State and jeopardize the stability of property | ||||||
| 12 | values and the value of any pension funds which may be invested | ||||||
| 13 | in such real estate partnerships; therefore, be it
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| 14 | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | ||||||
| 15 | NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that | ||||||
| 16 | we respectfully urge the United States Congress and the | ||||||
| 17 | President of the United States to maintain the current capital | ||||||
| 18 | gains tax treatment or classification for tax purposes of | ||||||
| 19 | promoted or carried interest used by real estate partnerships; | ||||||
| 20 | and be it further
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| 21 | RESOLVED, That suitable copies of this resolution be | ||||||
| 22 | delivered to the Majority and Minority Leaders of the United | ||||||
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| 1 | States Senate, the Speaker and Minority Leader of the United | ||||||
| 2 | States House of Representatives, and each member of the | ||||||
| 3 | Illinois congressional delegation.
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