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S. 4330119th CongressIn committeeLatest action Apr 16, 2026Decoded by AI · checked against the record
Official title: Ending the Carried Interest Loophole Act
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
This bill would tax investment fund managers' profit-based pay at regular income tax rates instead of the lower capital gains rate.
50-second read · 4 questions answered below
This bill changes how investment fund managers are taxed on carried interest, which is the share of a fund's profits they earn for managing it. Instead of paying the lower long-term capital gains tax rate, managers would pay ordinary income tax rates on the part of their earnings that goes beyond a normal return on their own invested money. The bill also closes workarounds, such as using partnership loans or financial contracts, that could let managers avoid the new rules.
This bill primarily affects managers of private equity, hedge, and venture capital funds who receive carried interest as compensation. It does not affect ordinary investors, employees, or small business owners.
Carried interest is currently taxed at the lower capital gains rate; this bill would treat the compensation portion of those earnings more like a regular paycheck for tax purposes. Managers who use certain financial arrangements to get around the rules would also be covered under the new law.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read twice and referred to the Committee on Finance.