Allows deduction for qualified business income to apply to certain interest dividends from business development companies.

The Small Business Investor Tax Parity Act of 2025 amends the Internal Revenue Code to allow the deduction under section 199A to apply to qualified BDC interest dividends in the same manner as qualified REIT dividends. This change applies to dividends from an electing business development company that are attributable to net interest income properly allocable to a qualified trade or business. The amendments will take effect for taxable years beginning after December 31, 2026.

Allows deduction for qualified business income to apply to certain interest dividends from business development companies.

The Small Business Investor Tax Parity Act of 2025 amends the Internal Revenue Code to allow the deduction under section 199A to apply to qualified BDC interest dividends in the same manner as qualified REIT dividends. This change applies to dividends from an electing business development company that are attributable to net interest income properly allocable to a qualified trade or business. The amendments will take effect for taxable years beginning after December 31, 2026.