Page:United States Statutes at Large Volume 124.djvu/3569

 124 STAT. 3543 PUBLIC LAW 111–325—DEC. 22, 2010 ‘‘(ii) EXCESS REPORTED AMOUNTS.—If the aggregate reported amount with respect to the company for any taxable year exceeds the exempt interest of the com- pany for such taxable year, an exempt-interest divi- dend is the excess of— ‘‘(I) the reported exempt-interest dividend amount, over ‘‘(II) the excess reported amount which is allo- cable to such reported exempt-interest dividend amount. ‘‘(iii) ALLOCATION OF EXCESS REPORTED AMOUNT.— ‘‘(I) IN GENERAL.—Except as provided in sub- clause (II), the excess reported amount (if any) which is allocable to the reported exempt-interest dividend amount is that portion of the excess reported amount which bears the same ratio to the excess reported amount as the reported exempt-interest dividend amount bears to the aggregate reported amount. ‘‘(II) SPECIAL RULE FOR NONCALENDAR YEAR TAXPAYERS.—In the case of any taxable year which does not begin and end in the same calendar year, if the post-December reported amount equals or exceeds the excess reported amount for such tax- able year, subclause (I) shall be applied by sub- stituting ‘post-December reported amount’ for ‘aggregate reported amount’ and no excess reported amount shall be allocated to any dividend paid on or before December 31 of such taxable year. ‘‘(iv) DEFINITIONS.—For purposes of this subpara- graph— ‘‘(I) REPORTED EXEMPT-INTEREST DIVIDEND AMOUNT.—The term ‘reported exempt-interest divi- dend amount’ means the amount reported to its shareholders under clause (i) as an exempt-interest dividend. ‘‘(II) EXCESS REPORTED AMOUNT.—The term ‘excess reported amount’ means the excess of the aggregate reported amount over the exempt interest of the company for the taxable year. ‘‘(III) AGGREGATE REPORTED AMOUNT.—The term ‘aggregate reported amount’ means the aggre- gate amount of dividends reported by the company under clause (i) as exempt-interest dividends for the taxable year (including exempt-interest divi- dends paid after the close of the taxable year described in section 855). ‘‘(IV) POST-DECEMBER REPORTED AMOUNT.— The term ‘post-December reported amount’ means the aggregate reported amount determined by taking into account only dividends paid after December 31 of the taxable year. ‘‘(V) EXEMPT INTEREST.—The term ‘exempt interest’ means, with respect to any regulated investment company, the excess of the amount of interest excludable from gross income under Applicability.