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| 1 | SENATE 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 would | ||||||
| 7 | re-characterize carried interest, currently treated as capital | ||||||
| 8 | gains, as ordinary income, thereby discouraging real estate | ||||||
| 9 | partnerships from investing in Illinois; this proposal could | ||||||
| 10 | also depress economic activity across our State and jeopardize | ||||||
| 11 | the stability of property values and the value of any pension | ||||||
| 12 | funds which may be invested in such real estate partnerships; | ||||||
| 13 | therefore, be it
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| 14 | RESOLVED, BY THE SENATE OF THE NINETY-SEVENTH GENERAL | ||||||
| 15 | ASSEMBLY OF THE STATE OF ILLINOIS, that we respectfully urge | ||||||
| 16 | the United States Congress and the President of the United | ||||||
| 17 | States to maintain the current capital gains tax treatment or | ||||||
| 18 | classification for tax purposes of promoted or carried interest | ||||||
| 19 | used by real estate partnerships; and be it further
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| 20 | RESOLVED, That suitable copies of this resolution be | ||||||
| 21 | delivered to the Majority and Minority Leaders of the United | ||||||
| 22 | States Senate, the Speaker and Minority Leader of the United | ||||||
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| 1 | States House of Representatives, and each member of the | ||||||
| 2 | Illinois congressional delegation.
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