This bill, titled the Small Business Investor Tax Parity Act of 2025, proposes to amend the Internal Revenue Code of 1986 to expand the application of the qualified business income deduction under Section 199A. Specifically, it would allow this deduction to apply to qualified business development company (BDC) interest dividends , mirroring the current treatment of qualified real estate investment trust (REIT) dividends. The legislation defines a "qualified BDC interest dividend" as a dividend from an electing business development company that is attributable to its net interest income from a qualified trade or business. An "electing business development company" is further defined as a BDC that has chosen to be treated as a regulated investment company under Section 851 of the tax code. These amendments are slated to take effect for taxable years beginning after December 31, 2026, aiming to provide tax benefits for investors in certain BDCs.