# 119-s-2962: Small Business Investor Tax Parity Act of 2025

119-s-2962, Small Business Investor Tax Parity Act of 2025, is a 119th Congress bill sponsored by Sen. Banks, Jim [R-IN] (R-IN); status introduced; PRIA reads it as touching household money (as of 2026-08-06).

- Canonical: https://policyrisk.com/legislation/119-s-2962
- As of: 2026-08-06
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2962
- Congress: 119
- Title: Small Business Investor Tax Parity Act of 2025
- Status: introduced
- Introduced: 2025-10-01
- Sponsor: Sen. Banks, Jim [R-IN] (R-IN)
- Cosponsors: 3
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-08-06

## Summary

**Would extend the 20% qualified business income (199A) deduction to certain dividends from electing business development companies (BDCs).** It would create a new category called "qualified BDC interest dividends" and treat them the same as qualified REIT dividends for purposes of the 199A deduction. - Individual investors who qualify for the 199A deduction could claim a 20% deduction on BDC dividends that are attributable to the BDC's net interest income and properly allocated to a qualified trade or business. - Electing BDCs that are treated as regulated investment companies could make some interest-based dividend distributions more valuable to shareholders by making those payments 199A-eligible. - Tax filers and BDCs must identify dividends as "qualified BDC interest dividends" for the deduction. The change would apply to taxable years beginning after Dec. 31, 2026.

## Cosponsors (3)

- Sen. Daines, Steve [R-MT] (R-MT), 2026-02-03T00:00:00.000Z
- Sen. Cornyn, John [R-TX] (R-TX), 2026-03-05T00:00:00.000Z
- Sen. McCormick, David [R-PA] (R-PA), 2026-08-04T00:00:00.000Z

## Provisions PRIA read

- Lower taxes on business development company dividends: benefit, high. If enacted, this bill would let you claim the section 199A (20%) deduction on certain dividends from electing business development companies. The dividend must come in the tax year and be attributable to the BDC's net interest income that is allocable to a qualified trade or business. The BDC must…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-4952: Protecting American Taxpayers Act
- 119-s-4378: Protecting American Taxpayers Act
- 119-s-1748: Kids Online Safety Act
- 119-s-292: Educational Choice for Children Act of 2025
- 119-s-554: United States-Israel Defense Partnership Act of 2025

## Sources
- [119-s-2962 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2962)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-4952: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4952)
- [119-s-4378: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4378)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-292: Educational Choice for Children Act of 2025](https://policyrisk.com/legislation/119-s-292)
- [119-s-554: United States-Israel Defense Partnership Act of 2025](https://policyrisk.com/legislation/119-s-554)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2962 (as of 2026-08-06).