Bill > HR652

This bill amends the Internal Revenue Code to extend a tax deduction currently available for Real Estate Investment Trusts (REITs) to Business Development Companies (BDCs). Specifically, the bill allows BDCs to qualify for the section 199A deduction on certain interest dividends, similar to how REIT dividends are treated. A qualified BDC interest dividend is defined as a dividend from an electing business development company that is attributable to net interest income properly allocable to a qualified trade or business. An "electing business development company" is defined as a BDC (as defined in the Investment Company Act of 1940) that has elected to be treated as a regulated investment company. The changes would take effect for taxable years beginning after December 31, 2026, giving businesses time to prepare for the new tax treatment. The bill aims to create tax parity between different types of investment vehicles, potentially providing financial benefits to BDCs and their shareholders.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/652/all-info