Page:United States Statutes at Large Volume 124.djvu/3577

 124 STAT. 3551 PUBLIC LAW 111–325—DEC. 22, 2010 ‘‘(I) the specified gains (as defined in section 4982(e)(5)(B)(i)) attributable to the portion of the taxable year after October 31, plus ‘‘(II) the ordinary income not described in sub- clause (I) attributable to the portion of the taxable year after December 31. ‘‘(E) SPECIAL RULE FOR COMPANIES DETERMINING REQUIRED CAPITAL GAIN DISTRIBUTIONS ON TAXABLE YEAR BASIS.—In the case of a company to which an election under section 4982(e)(4) applies— ‘‘(i) if such company’s taxable year ends with the month of November, the amount of qualified late-year losses (if any) shall be computed without regard to any income, gain, or loss described in subparagraphs (C), (D)(i)(I), and (D)(ii)(I), and ‘‘(ii) if such company’s taxable year ends with the month of December, subparagraph (A) shall not apply.’’. (b) CONFORMING AMENDMENTS.— (1) Subsection (b) of section 852 is amended by striking paragraph (10). (2) Paragraph (2) of section 852(c) is amended by striking the first sentence and inserting the following: ‘‘For purposes of applying this chapter to distributions made by a regulated investment company with respect to any calendar year, the earnings and profits of such company shall be determined with- out regard to any net capital loss attributable to the portion of the taxable year after October 31 and without regard to any late-year ordinary loss (as defined in subsection (b)(8)(D)).’’ (3) Subparagraph (D) of section 871(k)(2) is amended by striking the last two sentences and inserting the following: ‘‘For purposes of this subparagraph, the net short-term capital gain of the regulated investment company shall be computed by treating any short-term capital gain dividend includible in gross income with respect to stock of another regulated investment company as a short-term capital gain.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after the date of the enact- ment of this Act. SEC. 309. EXCEPTION TO HOLDING PERIOD REQUIREMENT FOR CER- TAIN REGULARLY DECLARED EXEMPT-INTEREST DIVI - DENDS. (a) IN GENERAL.—Subparagraph (E) of section 852(b)(4) is amended by striking all that precedes ‘‘In the case of a regulated investment company’’ and inserting the following: ‘‘(E) EXCEPTION TO HOLDING PERIOD REQUIREMENT FOR CERTAIN REGULARLY DECLARED EXEMPT-INTEREST DIVI- DENDS.— ‘‘(i) DAILY DIVIDEND COMPANIES.—Except as other- wise provided by regulations, subparagraph (B) shall not apply with respect to a regular dividend paid by a regulated investment company which declares exempt-interest dividends on a daily basis in an amount equal to at least 90 percent of its net tax- exempt interest and distributes such dividends on a monthly or more frequent basis. 26 USC 852 note. 26 USC 852.