Carried Interest Fairness Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 1091 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 1091 To amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 6, 2025 Ms. Perez (for herself and Mr. Beyer) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; ETC. (a) Short Title.--This Act may be cited as the ``Carried Interest Fairness Act of 2025''. (b) Amendment of 1986 Code.--Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; etc. Sec. 2. Partnership interests transferred in connection with performance of services. Sec. 3. Special rules for partners providing investment management services to partnerships. SEC. 2. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH PERFORMANCE OF SERVICES. (a) Modification to Election To Include Partnership Interest in Gross Income in Year of Transfer.--Subsection (c) of section 83 is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: ``(4) Partnership interests.--Except as provided by the Secretary-- ``(