Small Business Investor Tax Parity Act of 2020

Bill: 116-hr-6458
Sponsor: full_name: Rep. Boyle, Brendan F. [D-PA-2]
Introduced: 2020-04-07
Policy area: Taxation
Subjects: Business investment and capital

Income tax deductions

Interest, dividends, interest rates

Small business
Latest action: action_date: 2020-04-07
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-04-07
action_desc: Introduced in House
text: <p><b>Small Business Investor Tax Parity Act of 2020</b></p> <p>This bill allows a tax deduction for qualified business development company interest dividends on the same basis as qualified real estate investment trust (REIT) dividends. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6458 IN THE HOUSE OF REPRESENTATIVES April 7, 2020 Mr. Brendan F. Boyle of Pennsylvania (for himself and Mr. Arrington ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend section 199A of the Internal Revenue Code of 1986 to allow the deduction under that section to apply to qualified BDC interest dividends in the same manner as qualified REIT dividends.

1. Short title This Act may be cited as the Small Business Investor Tax Parity Act of 2020 . 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, 2019.