Contact Congress about H.R. 1091: Carried Interest Fairness Act of 2025

Many fund managers would pay regular income tax on carried interest, instead of the lower tax rate for long-term gains. The bill keeps different treatment for returns from the manager's own money invested in the fund. It also adds self-employment taxes and tougher penalties for avoiding the rules.

Modern Action explains legislation in plain English, helps you choose whether to support, oppose, or ask for changes, and drafts a message tied to the bill, your stance, and the elected officials who can act on it.

Carried Interest Fairness Act of 2025 is a House bill in committee. The latest recorded action: Referred to the House Committee on Ways and Means.

Latest action on H.R. 1091: Referred to the House Committee on Ways and Means.

Who this affects: This bill mainly affects investment fund managers who earn carried interest from private equity, hedge funds, real estate funds, or similar partnerships. It also affects partnerships and tax advisers because they would need to track which income comes from services and which income comes from the manager's own invested money. Publicly traded partnerships and some SPAC-related pay deals could also need changes after the bill's transition rules.

Why this matters: This bill matters because it could make fund managers pay tax on carried interest more like workers pay tax on wages. It targets a tax break that lets some service income get the lower rate for long-term investment gains. The bill could raise tax bills for affected managers, increase recordkeeping for funds, and change how investment pay deals are built. Some effects would depend on future tax rules and how firms respond.

Key provisions in H.R. 1091

• People who get a partnership interest for their work would usually count its value as income right away. They could avoid that default only by opting out under the required procedure.
• The bill creates a new tax rule for investment fund carried interest. It would turn some capital gains and losses from investment services partnership interests into regular income and regular loss.
• The bill defines which fund interests are covered. It looks at whether the person manages or advises investments and whether the partnership mostly holds financial or investment assets.
• Managers could still get capital-gains treatment on returns from their own money invested in the fund. The same protection can apply to amounts already taxed, but only if the fund meets the allocation tests.
• Most sales or transfers of covered fund interests would create regular income. The manager would have to recognize that income even if another tax rule might normally delay it.

How Modern Action helps you take action on H.R. 1091

You do not have to start with a blank letter. Modern Action turns the bill, your position, and the relevant congressional context into a message you can edit and send. The goal is to make contacting Congress clear, specific, and useful without forcing you to parse bill text or figure out the right office on your own.

Questions people ask about H.R. 1091

What is H.R. 1091?

Many fund managers would pay regular income tax on carried interest, instead of the lower tax rate for long-term gains. The bill keeps different treatment for returns from the manager's own money invested in the fund. It also adds self-employment taxes and tougher penalties for avoiding the rules.

How do I support or oppose H.R. 1091?

Choose support, oppose, or ask for changes on Modern Action. The action flow drafts the message for you and keeps the wording tied to this bill.

Who should I contact about H.R. 1091?

Modern Action uses your location to route the action to the congressional offices relevant to the bill and your representation.

Can Modern Action explain H.R. 1091 before I act?

Yes. Modern Action gives you a plain-English summary, current status, and action context before you send anything.