To qualify, the legislation must mandate that carried interest be taxed at a rate equal to or greater than ordinary income rates. The legislation will trigger a Yes resolution even if this change only applies to taxpayers above a certain income threshold (e.g., individuals earning over $400,000). Minor adjustments to the required holding period (e.g., extending the current 3-year rule under Section 1061) will not suffice for a Yes resolution.

The bill must pass the full chamber (not just committee) for House or Senate passage. For "become law" markets, the bill must be signed by the President or become law through veto override. Presidential pocket vetoes that expire resolve to No. Joint resolutions are treated as bills. Treaties require two-thirds Senate approval for passage. The market resolves based on the first occurrence of the specified milestone.