Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 66

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 66
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 the Fund.

Amounts not distributed on a
timely basis in accordance with a calendar year distribution requirement are subject to a nondeductible 4% U.S. federal excise tax at
the Fund level. To avoid the excise tax, the Fund must distribute (or be deemed to have distributed) during each calendar year an amount
at least equal to the sum of (i) 98% of its ordinary income (not taking into account any capital gains or losses) for the calendar year
and (ii) 98.2% of its capital gains in excess of its capital losses (adjusted for certain ordinary losses) for a one-year period generally
ending on October 31 of the calendar year (unless an election is made to use the Fund’s taxable year instead). In addition,
the minimum amounts that must be distributed in any year to avoid the excise tax will be increased or decreased to reflect any under-distribution
or over-distribution, as the case may be, from previous years. While the Fund intends to distribute any income and capital gain in the
manner necessary to minimize imposition of the 4% federal excise tax, there can be no assurance that sufficient amounts of the Fund’s
taxable income and capital gains will be distributed to avoid entirely the imposition of the tax. In that event, the Fund will be liable
for the tax only on the amount by which it does not meet the foregoing distribution requirement.

Dividends and distributions will
be treated as paid during the calendar year if they are paid during the calendar year or declared by the Fund in October, November or
December of the year, payable to Common Shareholders of record on a date during such a month and paid by the Fund during January of the
following year. Any such dividend or distribution paid during January of the following year will be deemed to be received by Common Shareholders
on December 31 of the year the dividend or distribution was declared, rather than when the dividend or distribution is actually received.

<div align='center'>S-9</div>

If the Fund were unable to satisfy
the 90% distribution requirement or otherwise were to fail to qualify as a RIC in any year, it would be taxed on all of its taxable income
in the same manner as an ordinary corporation and distributions to Common Shareholders would not be deductible by the Fund in computing
its taxable income.

To qualify again to be taxed
as a RIC in a subsequent year following the Fund’s failure to qualify as a