Small Business Investor Tax Parity Act of 2025

This bill adds "qualified BDC interest dividends" to the tax deduction for qualified business income (Section 199A) currently available for certain real estate investment trust (REIT) dividends. It directly affects investors in business development companies (BDCs) who receive specific interest dividends from these companies. The key provision defines these dividends as those from BDCs attributable to net interest income related to their qualified business activities, making them eligible for the same tax deduction as REIT dividends. The change applies to taxable years beginning after December 31, 2026.