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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.
1/24/2025, 9:21 AM
Summary of Bill HR 652
Bill 119 HR 652, also known as the "BDC Tax Parity Act," aims to amend the Internal Revenue Code of 1986 to allow for the deduction under section 199A to apply to qualified Business Development Company (BDC) interest dividends in the same way as qualified Real Estate Investment Trust (REIT) dividends.
Currently, section 199A of the Internal Revenue Code allows for a deduction for qualified business income for certain pass-through entities, such as partnerships and S corporations. However, BDCs, which are regulated investment companies that provide financing to small and mid-sized businesses, are not currently eligible for this deduction.
This bill seeks to provide parity between BDCs and REITs by allowing BDC interest dividends to qualify for the deduction under section 199A. This would help level the playing field for BDCs and provide them with similar tax benefits as REITs, which are already eligible for this deduction. Overall, the goal of Bill 119 HR 652 is to support BDCs and encourage investment in small and mid-sized businesses by providing them with tax benefits that are currently available to other types of investment vehicles.
Currently, section 199A of the Internal Revenue Code allows for a deduction for qualified business income for certain pass-through entities, such as partnerships and S corporations. However, BDCs, which are regulated investment companies that provide financing to small and mid-sized businesses, are not currently eligible for this deduction.
This bill seeks to provide parity between BDCs and REITs by allowing BDC interest dividends to qualify for the deduction under section 199A. This would help level the playing field for BDCs and provide them with similar tax benefits as REITs, which are already eligible for this deduction. Overall, the goal of Bill 119 HR 652 is to support BDCs and encourage investment in small and mid-sized businesses by providing them with tax benefits that are currently available to other types of investment vehicles.
Current Status of Bill HR 652
Bill HR 652 is currently in the status of Bill Introduced since January 23, 2025. Bill HR 652 was introduced during Congress 119 and was introduced to the House on January 23, 2025. Bill HR 652's most recent activity was Referred to the House Committee on Ways and Means. as of January 23, 2025
Bipartisan Support of Bill HR 652
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
0Democrat Cosponsors
0Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 652
Primary Policy Focus
Alternate Title(s) of Bill HR 652
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.
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.
Comments

Bodie Merrill
1,123
1 year ago
I ain't too happy 'bout this new bill, y'all. It's gonna make it so that BDC interest dividends can get the same deduction as REIT dividends. That just ain't fair! Why should one type of investment get special treatment over another? It's gonna mess with my taxes and I ain't too thrilled 'bout it. This bill needs some serious rethinking before it becomes law. #HRBill652 #TaxReform #NotFair Overall, this bill is gonna have a big impact on folks like me who rely on these deductions to save money come tax time. It's important to pay attention to these changes and speak up if we ain't happy with 'em.
Sponsors and Cosponsors of HR 652
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