# 119-hr-652: Small Business Investor Tax Parity Act of 2025

119-hr-652, Small Business Investor Tax Parity Act of 2025, is a 119th Congress bill sponsored by Rep. Arrington, Jodey C. [R-TX-19] (R-TX); status introduced; PRIA reads it as touching household money (as of 2026-09-21).

- Canonical: https://policyrisk.com/legislation/119-hr-652
- As of: 2026-09-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-652
- Congress: 119
- Title: Small Business Investor Tax Parity Act of 2025
- Status: introduced
- Introduced: 2025-01-23
- Sponsor: Rep. Arrington, Jodey C. [R-TX-19] (R-TX)
- Cosponsors: 4
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-09-21

## Summary

**Would extend the section 199A qualified business income deduction to certain dividends from electing business development companies (BDCs).** It would create a new "qualified BDC interest dividend" category so those dividends can be claimed like qualified REIT dividends for the 199A deduction, applying to tax years beginning after December 31, 2026. - Investors and households: Individual taxpayers who receive eligible BDC interest dividends could use the 199A deduction to reduce taxable income on those dividends, lowering after-tax returns for holders of qualifying BDC shares. - Electing BDCs and managers: BDCs that elect to be treated as regulated investment companies (RICs) would have net interest income that is properly allocable to a qualified trade or business pass through as deductible dividends when distributed. - Timing and scope: The change targets dividends attributable to a BDC's net interest income and would take effect for tax years starting after December 31, 2026.

## Cosponsors (4)

- Rep. Tenney, Claudia [R-NY-24] (R-NY), 2025-03-06T00:00:00.000Z
- Rep. Boyle, Brendan F. [D-PA-2] (D-PA), 2026-04-27T00:00:00.000Z
- Rep. Davis, Danny K. [D-IL-7] (D-IL), 2026-05-12T00:00:00.000Z
- Rep. Moore, Gwen [D-WI-4] (D-WI), 2026-07-09T00:00:00.000Z

## Provisions PRIA read

- Tax break for investors in business development companies: benefit, high. If enacted, you could claim the section 199A business income deduction on certain dividends from business development companies. The dividend would need to be a qualified BDC interest dividend. It must come from a business development company that elected to be treated as a regulated investment com…

## Related bills

- 119-hr-1: One Big Beautiful Bill Act
- 119-hr-9877: Health Equity and Accountability Act of 2026
- 119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025
- 119-hr-6900: American Affordability Act of 2025
- 119-hr-1502: North Platte Canteen Congressional Gold Medal Act
- 119-hr-452: Miracle on Ice Congressional Gold Medal Act

## Sources
- [119-hr-652 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/652)

## Related
- [119-hr-1: One Big Beautiful Bill Act](https://policyrisk.com/legislation/119-hr-1)
- [119-hr-9877: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-hr-9877)
- [119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025](https://policyrisk.com/legislation/119-hr-3514)
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-1502: North Platte Canteen Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1502)
- [119-hr-452: Miracle on Ice Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-452)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-652 (as of 2026-09-21).