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This bill amends the Internal Revenue Code to allow the Section 199A deduction (a 20% deduction for qualified business income) to apply to qualified interest dividends from Business Development Companies (BDCs) in the same manner as it currently applies to qualified dividends from Real Estate Investment Trusts (REITs). The bill defines "qualified BDC interest dividends" as dividends from electing BDCs that are attributable to net interest income from qualified trades or businesses. The changes would take effect for taxable years beginning after December 31, 2026.
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