By Frank Cordero (March 30, 2018, 11:50 AM EDT) -- For private equity firms focused on lower-middle-market deals, Congress has made it a little easier to put more cash in partners' pockets even with ever-increasing purchase price multiples. The recent reduction of the federal corporate tax rate (down to 21 percent) and the tax exemption for eligible capital gains under Section 1202 of the Internal Revenue Code present significant incentives for lower-middle-market investments in C corporations. Although the gain exclusion does not increase reported pre-tax internal rates of return or cash-on-cash multiples, with a little planning, limited partners (and possibly the general partner) may be spared the 23.8 percent federal capital gains tax on qualified portfolio company dispositions....