Bill · H.R. 652· House(119-HR-652)
Small Business Investor Tax Parity Act of 2025
- Introduced
- 1/23/2025
- Last activity
- 1/23/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Jodey Arrington
- Cosponsors
- - 1 - 3
- Introduced
- In Committee
What this bill would do
This bill, known as the "Small Business Investor Tax Parity Act of 2025," seeks to amend the Internal Revenue Code of 1986. It aims to allow the deduction under section 199A to apply to qualified BDC interest dividends. This change would treat these dividends in the same manner as qualified REIT dividends. The adjustments would apply to dividends from electing business development companies attributable to net interest income. These amendments would take effect for taxable years beginning after December 31, 2026.
Yes· 3 of 7
Does this cut taxes for small businesses?+4
The bill provides a new tax deduction for dividends from qualifying business development companies.
Would high-income households be better off under this?+4
The bill provides a tax deduction that benefits investors receiving dividends from business development companies.
Would people with substantial wealth be better off under this?+4
The bill lowers the effective tax burden on dividends received from electing business development companies.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Deduction Parity: The bill allows the deduction under section 199A to apply to qualified BDC interest dividends in the same manner as qualified REIT dividends (Section 2(a)). This provides a specific tax treatment for dividends received from electing business development companies that are attributable to net interest income of the company (Section 2(b)).
Potential Negative Impacts for People
- No negative impacts or burdens are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Small Business Taxes+4Improves Small Business Support+3Reduces Capital Gains Tax+3Improves Economic Growth+2
- Demographic And Interest Groups
- Good For High Income Households+4Good For High Net Worth Individuals+4Good For Business Owners+3
- 7/9/2026
- 1 Cosponsor added.
- 5/12/2026
- 1 Cosponsor added.
- 4/27/2026
- 1 Cosponsor added.
- 3/6/2025
- 1 Cosponsor added.
- 1/23/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Brendan BoyleDemocrat · Pennsylvania
Danny DavisDemocrat · Illinois
Gwen MooreDemocrat · Wisconsin
Claudia TenneyRepublican · New York