VotedBy VotedBy ⌕
Election Day · Tue, Nov 3See how your members of Congress voted →

H.R. 1735 · 116th Congress

Carried Interest Fairness Act of 2019

Key: what the circles and colors mean

Each circle is a bill. The ring fills as it moves through Congress:

IntroducedPassed one chamberPassed both chambersBecame law (gold)Resolution agreed to (full, dark)Failed or vetoed (gray)

Under the number: the Yea · Nay count of its final (or latest) recorded vote. On a member's page, the small badge is how that member voted: Y Yea / Aye, N Nay / No, P Present, – Not voting.

Gold and violet are only for Yea and Nay; they never mean a party. A member's party is the letter on their photo.

Never voted on. It didn't reach a floor vote before the 116th Congress ended, so it expired. A bill has to be introduced again to be considered in a new Congress.

BPD PascrellSponsor
36 cosponsors · 36 D

This bill 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.)

What it does: CRS summary · Introduced in House · Mar 13, 2019

Carried Interest Fairness Act of 2019

This bill 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.)

This 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.

Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov

About this bill and sources

Official title: Carried Interest Fairness Act of 2019

Latest action (Mar 13, 2019): Referred to the House Committee on Ways and Means.

Policy area: Taxation · Origin: House · Introduced: Mar 13, 2019

Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)

No recorded floor vote found.