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United States · Bill · S

S. 1598 (117th)

Carried Interest Fairness Act of 2021

referredUnited States· United States Congress· EN

Introduced

12 May 2021

Last action

12 May 2021 · Introduced

Status

Read twice and referred to the Committee on Finance.

Sponsors

Tammy Baldwin, Sen. Manchin, Joe, III [I-WV], Sen. Brown, Sherrod [D-OH], Elizabeth Warren, Chris Van Hollen, Bernie Sanders, Edward Markey, Timothy Kaine, John Reed, Sen. Booker, Cory A. [D-NJ], Sen. Feinstein, Dianne [D-CA], Amy Klobuchar, Sen. Hirono, Mazie K. [D-HI], Sheldon Whitehouse

Subjects

Taxation

Source updated

10 December 2025

Taxation

Official sourceDownload fileView documentsShare

Summary

Carried Interest Fairness Act of 2021 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.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

  1. 12 May 2021

    Introduced

    Read twice and referred to the Committee on Finance.

    Source: IntroReferral

  2. 12 May 2021

    Introduced

    Introduced in Senate

    Source: IntroReferral

Votes

No vote records are attached yet.

Versions

Documents

3 official files

Sponsors

Related records

Sources

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