The U.S. House of Representatives is planning to vote today on H.R. 4213, the bill containing the proposed changes to the taxation of carried interests as a revenue offset. However, final passage of the bill in the U.S. Senate appears unlikely to occur before June 7 at the earliest, as Senate Majority Leader Harry Reid (D-NV) is reported as stating that the Senate will not take up the measure until the week of June 7. In addition, it is being reported that House Ways and Means Committee Chairman Sander Levin (D-MI) has stated that the effective date of any change to the tax treatment of carried interest will not be until January 1, 2011. The Joint Committee Report on this provision, as well as a floor amendment, likewise reflect an effective date of the provision for taxable years ending after December 31, 2010. This would be a welcome change from the current proposed legislation, in which any change to the tax treatment of carried interest would be effective as of the date of the legislation’s enactment. These developments may provide an opportunity for further planning in advance of the effective date of the legislation.We will continue to monitor the progress of this legislation and keep you apprised of developments as they unfold. If you have any questions, please contact any of our tax partners listed here.