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Carried Interest Fairness Act of 2025: Tax Code Amendments

This Act amends the Internal Revenue Code of 1986 to modify the tax treatment of investment services partnership interests (carried interest). Net capital gains related to such interests will be treated as ordinary income rather than capital gains. Additionally, this income will be taken into account when determining net earnings from self-employment for social security tax purposes.
Key points
Net capital gains from investment services partnership interests will be recharacterized as ordinary income.
Income and losses from these interests will be included in the determination of net earnings from self-employment.
A 40% penalty is established for underpayments attributable to the avoidance of these new investment management service rules.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1091
Sponsor: Rep. Perez, Marie Gluesenkamp [D-WA-3]
Process start date: 2025-02-06
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Carried Interest Fairness Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_1091.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-02-06.

What are the main provisions?

Key points include:

  • Net capital gains from investment services partnership interests will be recharacterized as ordinary income.
  • Income and losses from these interests will be included in the determination of net earnings from self-employment.
  • A 40% penalty is established for underpayments attributable to the avoidance of these new investment management service rules.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Perez, Marie Gluesenkamp [D-WA-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Economy