Referred to the House Committee on Ways and Means.
Taxation
Why This Matters
This bill introduces a tax on money earned from financing lawsuits by third parties. It aims to regulate the income generated from these legal funding agreements.
If you are involved in litigation financing, you will have to pay a new tax on your earnings.
Who this affects
Third-party entities · Investors · Corporations
What changes is this bill making?
1This bill creates a tax on income from litigation financing received by third parties.
2The tax applies to any qualified litigation proceeds received by these third parties.
3The tax rate includes the highest income tax rate plus an additional 3.8 percentage points.
4It affects third-party entities that fund legal cases but are not attorneys.
5The tax is applied at the entity level for partnerships and similar organizations.
