This bill would change the Internal Revenue Code so the deduction under section 199A can apply to “qualified BDC interest dividends” the same way it applies to qualified REIT dividends. The bill adds a definition: a qualified BDC interest dividend is a dividend from an electing business development company that is attributable to the company’s net interest income that is properly allocable to a qualified trade or business. An electing business development company means a business development company that has made the election under section 851 to be treated as a regulated investment company. The rule would apply to taxable years beginning after December 31, 2026.
If you receive dividends from an electing business development company and those dividends are attributable to the company’s net interest income allocated to a qualified trade or business, those dividends would be eligible for the section 199A deduction in the same manner as qualified REIT dividends, beginning for taxable years after 2026.
No publicly available information on budgetary effects or costs is included in the bill text or metadata.
No publicly available information.
No publicly available information.