US SB2962

Extends the Section 199A qualified business income deduction (up to 20%) to qualified BDC interest dividends, giving them the same tax treatment currently available to qualified REIT dividends

Defines "qualified BDC interest dividend" as any dividend from an electing business development company attributable to net interest income from a qualified trade or business

Requires business development companies (as defined in the Investment Company Act of 1940) to elect treatment as a regulated investment company under IRC Section 851 to qualify

Applies to taxable years beginning after December 31, 2026