Small Business Investor Tax Parity Act of 2023

Bill: 118-hr-5225
Sponsor: full_name: Rep. Arrington, Jodey C. [R-TX-19]
Introduced: 2023-08-18
Policy area: Taxation
Latest action: action_date: 2023-08-18
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2023-08-18
action_desc: Introduced in House
text: <p><b>Small Business Investor Tax Parity Act of 2023</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 118th CONGRESS 1st Session H. R. 5225 IN THE HOUSE OF REPRESENTATIVES August 18, 2023 Mr. Arrington (for himself, Mr. Boyle of Pennsylvania , Mr. LaHood , and Mr. Davis of Illinois ) 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 2023 . 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, 2024.