Page:United States Statutes at Large Volume 124.djvu/3573

 124 STAT. 3547 PUBLIC LAW 111–325—DEC. 22, 2010 ‘‘(II) EXCESS REPORTED AMOUNT.—The term ‘excess reported amount’ means the excess of the aggregate reported amount over the qualified short-term gain 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 short-term capital gain divi- dends for the taxable year (including short-term capital gain dividends 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) TERMINATION.—The term ‘short-term capital gain dividend’ shall not include any dividend with respect to’’. (g) CONFORMING AMENDMENTS.—Section 855 is amended— (1) by striking subsection (c) and redesignating subsection (d) as subsection (c), and (2) by striking ‘‘, (c) and (d)’’ in subsection (a) and inserting ‘‘and (c)’’. (h) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after the date of the enact- ment of this Act. (i) APPLICATION OF JGTRRA SUNSET.—Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 shall apply to the amendments made by subparagraphs (B) and (D) of subsection (e)(1) to the same extent and in the same manner as section 303 of such Act applies to the amendments made by section 302 of such Act. SEC. 302. EARNINGS AND PROFITS OF REGULATED INVESTMENT COMPANIES. (a) IN GENERAL.—Paragraph (1) of section 852(c) is amended to read as follows: ‘‘(1) TREATMENT OF NONDEDUCTIBLE ITEMS.— ‘‘(A) NET CAPITAL LOSS.—If a regulated investment company has a net capital loss for any taxable year— ‘‘(i) such net capital loss shall not be taken into account for purposes of determining the company’s earnings and profits, and ‘‘(ii) any capital loss arising on the first day of the next taxable year by reason of clause (ii) or (iii) of section 1212(a)(3)(A) shall be treated as so arising for purposes of determining earnings and profits. ‘‘(B) OTHER NONDEDUCTIBLE ITEMS.— ‘‘(i) IN GENERAL.—The earnings and profits of a regulated investment company for any taxable year (but not its accumulated earnings and profits) shall not be reduced by any amount which is not allowable as a deduction (other than by reason of section 265 or 171(a)(2)) in computing its taxable income for such taxable year. 26 USC 854 note. 26 USC 852 note. 26 USC 855.