July 2010

Blumenthal Provides Updates on Carried Interest and Illinois Angel Investment Credit

Mark Blumenthal, Partner at Blackman Kallick and speaker at the recent IVCA Tax Breakfast, provides updates on two key topics covered during the June 24th event; Carried Interest and the Illinois Angel Investment Credit.

Carried Interest--Update

I have heard that timing is everything in life.  The Senate must have been aware that we were discussing the proposed Carried Interest provisions on the morning of June 24th, because in that afternoon the Senate tried, but failed, to get the 60 votes needed to move the Tax Extenders Bill forward.  This Senate Bill (H. R. 4213) includes the Carried Interest provisions and is now on hold. 

In statements made on June 24th, Senate Majority Leader Harry Reed stated that he wanted to move on to other legislation for now.  We believe that this is not the end of new taxes on Carried Interest and that new Carried Interest taxes will show up as a revenue raiser in a new unrelated bill or Modified H. R. 4213.

Illinois Angel Investment Credit—Update

As we anticipated at the IVCA tax breakfast, Governor Quinn has signed this bill with an effective date of June 24, 2010. The program for the entire state is capped at $10 million in tax credits per calendar year.

We also reached out to the state and informally talked to a Department of Commerce and Economic Opportunity (“DCEO”) representative who indicated that she does not have any information related to the application process at this time. For a summary of the 25% tax credit, click here.

If you have questions about the above or anything covered in Mark’s Back to the Future presentation, he can be reached at 312-980-2917 or mblumenthal@blackmankallick.com

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