Senate Tax Revisions Mostly Favorable to Venture-Capital Firms

The Senate’s passage of a proposed overhaul to the U.S. tax code caps a period of uncertainty for the tech industry, spurring a sigh of relief from venture-capital investors.

In the months leading up to the landmark bill, Silicon Valley was rife with uncertainty over how new provisions would treat partnership profits at venture firms and the taxation of employee stock options. Investors feared that changes to the carried-interest deduction, which is the roughly 20% share in the profits enjoyed by general partners of venture...