What does Preamble of Small Business Investor Tax Parity Act of 2025 do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment concerns the application of the deduction under section 199A. The bill aims to apply this deduction to qualified BDC interest dividends in the same manner as qualified REIT dividends.

What does SHORT TITLE. of Small Business Investor Tax Parity Act of 2025 do?

This bill is formally titled the Small Business Investor Tax Parity Act of 2025.

What does DEDUCTION FOR QUALIFIED BUSINESS INCOME TO APPLY TO CERTAIN of Small Business Investor Tax Parity Act of 2025 do?

This section amends Internal Revenue Code Section 199A to allow a deduction for qualified BDC interest dividends. It defines 'qualified BDC interest dividend' as a dividend from an electing business development company attributable to net interest income properly allocable to a qualified trade or business. An 'electing business development company' is defined as a business development company that has an election in effect under section 851 to be treated as a regulated investment company. The amendments apply to taxable years beginning after December 31, 2026.

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Small Business Investor Tax Parity Act of 2025

Last updated: 1/23/2025 · Introduced: 1/23/2025

Author: Jodey Arrington (R-TX)

TL;DR (AI)

This bill allows taxpayers to deduct qualified business development company (BDC) interest dividends, similar to the deduction currently applied to real estate investment trust (REIT) dividends.
The legislation defines 'qualified BDC interest dividend' as dividends from business development companies electing to be treated as regulated investment companies, attributable to net interest income.
These changes apply to taxable years beginning after December 31, 2026.

119th Congressin committeeHR. 8415(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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