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This bill amends the Internal Revenue Code to allow Business Development Companies (BDCs) to pass through qualified interest dividends to investors with the same tax deduction treatment as Real Estate Investment Trusts (REITs) under section 199A. Specifically, it permits investors to deduct up to 20% of qualified BDC interest dividends from their taxable income, provided the dividends are attributable to net interest income from qualified business activities. The provision applies to taxable years beginning after December 31, 2026.
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