Carried Interest Fairness Act of 2025

Changes how partnership interests given for services are valued and taxed, and creates a new rule that treats certain "investment services" partnership gains as ordinary income instead of capital gain. It requires specific valuation rules, limits loss and dividend treatment, adds anti-abuse provisions for related-party and tiered partnerships, and directs Treasury to issue regulations and reporting requirements.

The rules apply to partnership interests transferred after enactment and add compliance and reporting obligations for partnerships, partners, and investment funds while altering the tax outcome for many carried‑interest–style compensation arrangements.