Senator Max Baucus has introduced a new version of the tax extenders legislation, the Job Creation and Tax Cut Act of 2010. Please see:

The text of the bill;

A summary of the bill's provisions;

A comparison of Baucus' bill to the provisions that were in the last tax extenders bill Congress tried to pass (H.R.4213).

You can also find a link to the press release announcing the new bill here.

The carried interest tax hike provisions are summarized as follows:

Changes to the taxation of carried interest. The bill would prevent investment fund managers from paying taxes entirely at capital gains rates on investment management services income received as carried interest in an investment fund. To the extent that carried interest reflects a return on invested capital, the bill would continue to tax carried interest at capital gain tax rates. However, to the extent that carried interest does not reflect a return on invested capital, the bill would require investment fund managers to treat 75 percent of the remaining carried interest as ordinary income beginning on January 1, 2011. The amount that will be treated as ordinary income is reduced to 50 percent for carried interest that does not reflect a return on invested capital but which is attributable to the sale of assets which are held for five or more years. The lower recharacterization percentage also applies to the gain or loss attributable to the underlying assets held for five or more years when a partnership interest is sold as well as to gain attributable to section 197 intangibles of a entity providing specific investment management services when the partnership interest has been held for five or more years. This proposal is estimated to raise $13.594 billion over 10 years. Analysis to follow.