119-s2962

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2962 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2962

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.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 October 1, 2025

 Mr. Banks introduced the following bill; which was read twice and 
 referred to the Committee on Finance

_______________________________________________________________________

 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.
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