Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 65

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 65
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 of the sum of (i) its investment company taxable income (which includes, among other
items, dividends, interest, the excess of any net short-term capital gain over net long-term capital loss and other taxable income, other
than net capital gain (as defined below), reduced by deductible expenses) determined without regard to the deduction for dividends paid
and (ii) its net tax-exempt interest income (the excess of its gross tax-exempt interest income over certain disallowed deductions), if
any (the “Annual Distribution Requirement”). The Fund intends to distribute annually all or substantially all of such income
and gain on a timely basis. If the Fund retains any investment company taxable income or net capital gain (as defined below), it will
be subject to U.S. federal income tax on the retained amount at regular corporate tax rates. In addition, the Fund will be subject to
regular U.S. federal income tax or any built-in gains that existed in its assets as of the time of its conversion to a RIC, to the extent
such gains were recognized within five years of that time.

The Fund may retain for investment
its net capital gain (which consists of the excess of its net long-term capital gain over its net short-term capital loss). However, if
the Fund retains any net capital gain or any investment company taxable income, it will be subject to a tax on such amount at regular
corporate tax rates. If the Fund retains any net capital gain, it may designate the retained amount as undistributed capital gains in
a notice to its Common Shareholders, each of whom, if subject to U.S. federal income tax on long-term capital gains, (i) will be required
to include in income for U.S. federal income tax purposes its share of such undistributed net capital gain, (ii) will be entitled to credit
its proportionate share of the tax paid by the Fund against its U.S. federal income tax liability, if any, and to claim refunds to the
extent that the credit exceeds such liability and (iii) will increase its tax basis in its Common Shares by the excess of the amount described
in clause (i) over the amount described in clause (ii). A Common Shareholder that is not subject to U.S. federal income tax
or otherwise is not required to file a U.S. federal income tax return would be required to file a U.S. federal income tax return on the
appropriate form in order to claim a refund for the taxes paid by