HR 652 Re-checks Congress.gov for new actions and updates the bill's status, and fills in any sponsors, committees, or related bills that are missing. It does not re-pull sponsors/cosponsors/committees/related — those rarely change — and it skips all work if nothing has changed upstream, so it's cheap to click.
Small Business Investor Tax Parity Act of 2025
To amend the Internal Revenue Code of 1986 to allow the deduction under section 199A to apply to qualified BDC interest dividends in the same manner as qualified REIT dividends.
Summary
The bill amends the tax code to allow investors in qualified business development companies (BDCs) to claim the same income tax deduction for their dividend income as investors in real estate investment trusts (REITs) currently receive. Specifically, it extends the section 199A qualified business income deduction to "qualified BDC interest dividends" from BDCs that have elected to be treated as regulated investment companies. A qualified BDC interest dividend is one that derives from the company's net interest income from qualified business activities. The change applies to taxable years beginning after December 31, 2026.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
4 cosponsors
Money behind the sponsor
Top reported contributors to Jodey C. Arrington’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
- CHARTER BROKERAGE LLC $28,800
- SIMFLO $19,800
- GRAIL $18,200
- NORTHSTAR ANESTHESIA $13,200
- CITY BANK $13,200
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Jodey C. Arrington → · Outside spending →
Actions (2)
- Jan 23, 2025 Referred to the House Committee on Ways and Means. · house
- Jan 23, 2025 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE HOUSE OF REPRESENTATIVES
January 23, 2025
Mr. Arrington introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow the deduction under section 199A to apply to qualified BDC interest dividends in the same manner as qualified REIT dividends.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Small Business Investor Tax Parity Act of 2025”.
SEC. 2. DEDUCTION FOR QUALIFIED BUSINESS INCOME TO APPLY TO CERTAIN INTEREST DIVIDENDS OF QUALIFIED BUSINESS DEVELOPMENT COMPANIES.
(a) In General.—Subsections (b)(1)(B) and (c)(1) of section 199A of the Internal Revenue Code of 1986 are each amended by inserting “, qualified BDC interest dividends,” after “qualified REIT dividends”.
(b) Qualified BDC Interest Dividend Defined.—Section 199A(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(5) Qualified bdc interest dividend.—
“(A) In general.—The term ‘qualified BDC interest dividend’ means any dividend from an electing business development company received during the taxable year which is attributable to net interest income of such company which is properly allocable to a qualified trade or business of such company.
“(B) Electing business development company.—For purposes of this paragraph, the term ‘electing business development company’ means a business development company (as defined in section 2(a) of the Investment Company Act of 1940) which has an election in effect under section 851 to be treated as a regulated investment company.”.
(c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2026. <all>
Comments