3.0.0 6763 2022-12-30T04:33:57Z 2022-12-30T04:33:57Z House HR 2022-02-18 117 [Congressional Record Volume 168, Number 33 (Friday, February 18, 2022)][House]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Ms. CRAIG:H.R. 6763.Congress has the power to enact this legislation pursuantto the following:Article I, Section 8, Clause 1 of the United StatesConstitution.[Page H1132]]]> hswm00 Ways and Means Committee House Standing Referred to 2022-02-18T15:00:40Z Carried Interest Fairness Act of 2021 117 1068 HR 2021-02-15 Referred to the House Committee on Ways and Means. Related bill CRS Carried Interest Fairness Act of 2021 117 1598 S 2021-05-12 Read twice and referred to the Committee on Finance. Related bill CRS 2022-02-18 Referred to the House Committee on Ways and Means. IntroReferral H11100 2 House floor actions hswm00 Ways and Means Committee 2022-02-18 Introduced in House IntroReferral Intro-H 9 Library of Congress 2022-02-18 Introduced in House IntroReferral 1000 9 Library of Congress C001119 Rep. Craig, Angie [D-MN-2] Angie Craig D MN 2 N Taxation Taxation 00 2022-02-18 Introduced in House 2022-04-06T15:33:10Z Small Business Tax Relief Act

This bill establishes a graduated corporate tax rate for corporations whose taxable income does not exceed $5 million. The rate of such tax is 18% of taxable income not exceeding $400,000, and 21% of taxable income that equals or exceeds $400,000.

The bill also modifies the tax treatment of carried interest, which is compensation that is typically received by a partner of a private equity or hedge fund and is based on a share of the fund's profits. (Under current law, carried interest is taxed as investment income rather than at ordinary income tax rates.)

The bill includes provisions that

  • set forth a special rule for the inclusion in gross income of partnership interests transferred in connection with the performance of services,
  • treat as ordinary income the net capital gain with respect to an investment services partnership interest except to the extent such gain is attributable to a partner's qualified capital interest,
  • exempt income from investment services partnership interests from treatment as qualifying income of a publicly traded partnership,
  • exempt certain family partnerships from the application of this bill,
  • increase the penalty for underpayments of tax resulting from failure to treat income from an investment services partnership interest as ordinary income, and
  • include income and loss from an investment services partnership interest for purposes of determining net earnings from self-employment and applicable self-employment taxes.

The bill defines investment services partnership interest as any interest in a partnership held by a person who provides services to a partnership by (1) advising the partnership about investing in, purchasing, or selling specified assets; (2) managing, acquiring, or disposing of specified assets; or (3) arranging financing with respect to acquiring specified assets.

]]> Small Business Tax Relief Act Display Title Small Business Tax Relief Act Short Title(s) as Introduced Small Business Tax Relief Act Introduced in House IH Official Title as Introduced To amend the Internal Revenue Code of 1986 to lower the corporate tax rate for small businesses and close the carried interest loophole, and for other purposes. Introduced in House IH Introduced in House 2022-02-18T05:00:00Z https://www.govinfo.gov/content/pkg/BILLS-117hr6763ih/xml/BILLS-117hr6763ih.xml 2022-02-18 Referred to the House Committee on Ways and Means. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.