Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 84

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 84
---
 Income
only to the extent it is attributable to items of income of such MLP that would be Qualifying Income if earned directly by the Fund.

The Fund’s investments
in partnerships, including in Qualified Publicly Traded Partnerships, may result in the Fund being subject to state, local or foreign
income, franchise or withholding tax liabilities.

If the Fund fails to satisfy
the 90% annual gross income requirement or the asset diversification requirements discussed above in any taxable year, it may be eligible
for relief provisions if the failures are due to reasonable cause and not willful neglect and if a penalty tax is paid with respect to
each failure to satisfy the applicable requirements. Additionally, relief is provided for certain de minimis failures of the asset diversification
requirements where the Fund corrects the failure within a specified period. If the applicable relief provisions are not available or cannot
be met, all of the Fund’s income would be subject to corporate-level U.S. federal income tax as described below. The fund cannot
provide assurance that the Fund would qualify for any such relief should the Fund fail the 90% annual gross income requirement or the
asset diversification requirements discussed above.

For each taxable year the Fund
is treated as a RIC for U.S. federal income tax purposes, subject to the discussion of built-in gains below the Fund generally will not
be subject to U.S. federal income tax on income and gains that it distributes each taxable year to its Common Shareholders, provided that
in such taxable year it distributes at least 90% 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