,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #deee  ,,in ,,the ,,house ,,of  
,,representatives  ,may #a1 #bjad ,mr4  
,paulsen 7for himself and ,mr4          
,campbell7 introduced the following     
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to expand and make      
permanent rules related to investment by
 nonresident aliens in domestic mutual  
funds4  #a4 ,exemption for certain      
dividends paid by regulated investment  
companies to nonresident aliens expanded
 and made permanent  7a7 ,exemptions for
 certain dividends made permanent  7#a7 
,interest-related dividends             
,subparagraph 7,c7 of section           
#hga7k77#a7 of the ,internal ,revenue   
,code of #aihf is amended by striking   
clause 7v74  7#b7 ,capital gain         
dividends ,subparagraph 7,c7 of section 
#hga7k77#b7 of such ,code is amended by 
striking clause 7v74  7b7 ,expansion of 
exemption for interest-,related         

dividends  7#a7 ,in general             
,subparagraph 7,e7 of section           
#hga7k77#a7 of such ,code is amended by 
striking clauses 7iii7 and 7iv7 and     
inserting the following new clauses3    
7iii7 ,any amount referred to in        
subsection 7i77#b77;,a7 7without regard 
to the trade or business of the         
regulated investment company7 or in     
subsection 7i77#b77;,b74  7iv7 ,any     
interest which is exempt from tax under 
section #ajc or any other provision of  
law without regard to the identity of   
the holder4  7v7 ,any other amount      
includible in gross income that is      
determined by reference to an interest  
rate and that would not be subject to   
withholding under section #adda if      
received by a nonresident alien         
individual4  7vi7 ,any amount includible
 in gross income from sources without   
the ,united ,states4  7vii7 ,any        
qualified income-related dividend       
includible in gross income with respect 
to stock of another regulated investment

 company4  4  7#b7 ,modification of     
exceptions ,clause 7i7 of section       
#hga7k77#a77;,b7 is amended by striking 
interest 7other than interest described 
in subparagraph 7,e77i7 or 7iii77 and   
inserting interest described in         
subparagraph 7,e77ii7 7and not described
 in subparagraph 7,e7 7i71 7iii71 or    
7iv774  7#c7 ,conforming amendments     
7,a7 ,paragraph 7#a7 of section #hga7k7 
of such ,code is amended--  7i7 by      
striking interest-related dividend each 
place it appears in the text and        
inserting qualified income-related      
dividend1  7ii7 by striking qualified   
net interest income each place it       
appears in the text and inserting       
qualified net income1  7iii7 by striking
 qualified interest income each place it
 appears in the text and inserting      
qualified income1  7iv7 by striking     
,interest-related dividends in the      
heading thereof and inserting ,qualified
 income-related dividends1  7v7 by      
striking ,interest related dividend in  

the heading of subparagraph 7,c7 and    
inserting ,qualified income-related     
dividend1  7vi7 by striking ,qualified  
net interest income in the heading of   
subparagraph 7,d7 and inserting         
,qualified net income1 and  7vii7 by    
striking ,qualified interest income in  
the heading of subparagraph 7,e7 and    
inserting ,qualified income4  7,b7      
,paragraph 7#a7 of section #hha7;e7 of  
such ,code is amended--  7i7 by striking
 interest-related dividend each place it
 appears in subparagraphs 7,a7 and 7,b7 
and inserting qualified income-related  
dividend1  7ii7 by striking interest    
received in subparagraph 7,b77ii7 and   
inserting interest described in clause  
7ii7 of section #hga7k77#a77;,e7 7and   
not described in clause 7i71 7iii71 or  
7iv7 of such section7 received1  7iii7  
by striking interest-related dividend   
received in subparagraph 7,c7 and       
inserting qualified income-related      
dividend received from a regulated      
investment company1  7iv7 by striking   

clause 7i7 or 7iii7 in subparagraph 7,c7
 and inserting clause 7i71 7iii71 or    
7iv71 and  7v7 by striking              
,interest-related dividends in the      
heading thereof and inserting ,qualified
 income-related dividends4  7c7         
,effective date ,the amendments made by 
this section shall apply to dividends   
with respect to taxable years of        
regulated investment companies beginning
 after ,december #ca1 #bjac4