,,ii  #aai? ,,congress  #a/ ,session    
,s4 #ahci  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #ba1 #bjbe ,mr4   
,cornyn introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to all[           
individuals to def] recognition (       
re9ve/$ capital ga9s di/ributions f     
regulat$ inve/m5t companies4  #a4  ,%ort
 title  ,?is ,act may be cit$ z !       
,g5]at+ ,retirem5t ,own]%ip ?r\gh       
,long-,t]m ,hold+4  #b4  ,def]ral (     
re9ve/$ capital ga9 divid5ds ( regulat$ 
inve/m5t companies  7a7  ,9 g5]al  ,"p  
,,iii ( sub*apt] ,o ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #ajde ! foll[+   
new section3  #ajdf4  ,re9ve/$ capital  
ga9 divid5ds ( regulat$ inve/m5t        
companies  7a7  ,nonrecognition ( ga9   
,9 ! case ( an individual1 no ga9 %all  
be recogniz$ on ! receipt ( a capital   
ga9 divid5d di/ribut$ by a regulat$     
inve/m5t company to :i* "p ,i ( sub*apt]

 ,m applies if su* capital ga9 divid5d  
is automatically re9ve/$ 9 additional   
%>es ( ! company pursuant to a divid5d  
re9ve/m5t plan4  7b7  ,def9itions &     
special rules  ,= purposes ( ?is        
section-- 7#a7 ,capital ga9 divid5d ,!  
t]m capital ga9 divid5d has ! mean+ giv5
 to su* t]m by section                  
#heb7;b77#c77;,c74  7#b7  ,recognition (
 def]r$ capital ga9 divid5ds  7,a7  ,9  
g5]al  ,ga9 treat$ z unrecogniz$ 9      
accordance ) subsection 7a7 %all be     
recogniz$ 9 accordance ) subp>agraph    
7,b7--  7i7 ^u a subsequ5t sale or      
r$emption by su* individual ( /ock 9 !  
di/ribut+ company1 or  7ii7 ^u ! dea? ( 
! individual4  7,b7 ,ga9 recognition    
7i7 ,9 g5]al ,^u a sale or r$emption    
describ$ 9 subp>agraph 7,a71 ! taxpay]  
%all recognize t portion ( total ga9    
treat$ z unrecogniz$ 9 accordance )     
subsection 7a7 7& n previ\sly recogniz$ 
pursuant to ?is subp>agraph7 t is       
equival5t to ! portion ( ! taxpay]'s    
%>es 9 ! di/ribut+ company t are sold or

 r$eem$4  7ii7  ,dea? ( individual      
,except z provid$ by regulations1 any   
portion ( su* total ga9 n recogniz$ "u  
clause 7i7 prior to ! taxpay]'s dea?    
%all be recogniz$ ^u ! dea? ( ! taxpay] 
& includ$ 9 ! taxpay]'s gross income = !
 taxable ye> end+ on ! date ( !         
taxpay]'s dea?4  7#c7  ,hold+ p]iod  ,! 
taxpay]'s hold+ p]iod 9 %>es acquir$    
?r\gh re9ve/m5t ( a capital ga9 divid5d 
to :i* subsection 7a7 applies %all be   
det]m9$ by treat+ ! %>ehold] z hav+ held
 su* %>es = "o ye> & a day z ( ! date   
su* %>es are acquir$4  7c7  ,section n  
,to apply to c]ta9 taxpay]s  ,?is       
section %all n apply to-- 7#a7 an       
individual ) respect to :om a d$uction  
"u section #aea is all[able to ano!r    
taxpay] = a taxable ye> beg9n+ 9 !      
cal5d> ye> 9 :i* su* individual's       
taxable ye> beg9s1 or  7#b7 an e/ate or 
tru/4  7d7 ,regulations ,! ,secret>y    
%all prescribe su* regulations z may be 
necess>y to c>ry out ! purposes ( ?is   
section4  4  7b7  ,con=m+ am5dm5ts  7#a7

 ,section #heb7;b77#c77;,b7 ( su* ,code 
is am5d$ by add+ at ! end ! foll[+ new  
s5t5ce3 ,= rules reg>d+ nonrecognition (
 ga9 ) respect to re9ve/$ capital ga9   
divid5ds receiv$ by individuals1 see    
section #ajdf44  7#b7 ,! table (        
sections = "p ,,iii ( sub*apt] ,o (     
*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #ajde !   
foll[+ new item3  ,sec4 #ajdf4 ,re9ve/$ 
capital ga9 divid5ds ( regulat$ inve/m5t
 companies4  4  7c7  ,effective date  ,!
 am5dm5ts made by ?is section %all apply
 to taxable ye>s end+ aft] ! date ( !   
enactm5t ( ?is ,act4