Bill > HR1068

This bill, the Carried Interest Fairness Act of 2021, amends the Internal Revenue Code to change the tax treatment of certain income earned by partners who provide investment management services to partnerships. Specifically, it would require that net capital gains and some other income from these "investment services partnership interests" be taxed as ordinary income rather than capital gains. The bill also includes provisions to prevent avoidance of these new rules, such as by requiring certain allocations to "qualified capital interests" to be excluded. Additionally, it makes related changes to the treatment of these interests for self-employment tax purposes and in the context of publicly traded partnerships.