WeVote
Log In

Bill

Bill

S 445

Regulations

2025-2026 Regular Session Introduced by Danny Verdin

Would change how carried interests are taxed in partnerships, tightening rules for service-based interests and investment managers to ensure fair tax treatment.

Referred to Committee on Judiciary
0
WeVote Research Nonpartisan
Bill Summary · S 445

Summary: Carried Interest Fairness Act of 2025 (S. 445)

Overview

The Carried Interest Fairness Act of 2025, introduced in the Senate as S. 445 on February 6, 2025, aims to address the tax treatment of carried interests within partnerships, particularly where partnership interests are transferred in connection with the performance of services and where partners provide investment management services. The bill would make amendments to the Internal Revenue Code of 1986 to implement its provisions. It is currently introduced and referred to the Senate Committee on Finance.

Key Provisions (as introduced)

  • Sec. 1 – Short title
    • Establishes the official name of the act as the Carried Interest Fairness Act of 2025.
  • Sec. 2 – Partnership interests transferred in connection with performance of services
    • Creates rules governing when and how partnership interests transferred in exchange for performance of services are treated for tax purposes.
  • Sec. 3 – Special rules for partners providing investment management services to partnerships
    • Establishes specific tax rules applicable to partners who provide investment management services to partnerships.

Note: The summary reflects the titles and topics of the introduced sections. Detailed statutory language and operative mechanics are not provided in the information available here.

Who Would Be Affected

  • Individuals and entities that receive partnership interests in connection with performing services.
  • Partners who provide investment management services to partnerships.
  • Partnerships themselves that issue or hold interests tied to service performance or investment management activities.
  • Industries relying on carried interests, including private equity, hedge funds, venture capital, and other investment management groups.

Procedural History and Timeline

  • Introduced in the Senate: February 6, 2025.
  • Legislative action: Read twice and referred to the Senate Committee on Finance on the introduction date.
  • Legislative status: Introduced and pending Committee consideration (no further action indicated in the provided information).

Sponsorship

  • Primary Sponsor: Tammy Baldwin
  • Notable cosponsors (alphabetical): Amy Klobuchar, Elizabeth A. Warren, Timothy M. Kaine, Chris Van Hollen, Peter Welch, Jeff Merkley, Bernard Sanders, Edward J. Markey, Brian Schatz, Cory Booker, Patty Murray, Mazie K. Hirono
  • The bill has broad Democratic sponsorship and support from a number of prominent senators.

Related Legislation

  • Companion bills in the House: HR 3275, HR 2621, HR 1091

Notes

  • The available information provides the high-level structure and intent of the bill but does not include the full statutory text, specific taxation changes, or detailed implementation rules. If you’d like, I can compare this bill to its House companions (HR 3275, HR 2621, HR 1091) or summarize potential fiscal and industry impacts once more detailed language is available.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.