Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 42

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 42
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 net short-term capital loss). The Fund intends to distribute at least annually substantially all of such income and gain. If
the Fund retains any investment company taxable income or net capital gain, it will be subject to U.S. federal income tax on the retained
amount at regular corporate tax rates. In addition, if the Fund fails to qualify as a RIC for any taxable year and relief is not available,
it will be subject to U.S. federal income tax on all of its income and gains at regular corporate tax rates. Furthermore, the Fund will
be subject to regular U.S. federal income tax on 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.

Taxation of Common Shareholders

For each taxable year the
Fund is treated as a RIC for U.S. federal income tax purposes, distributions paid to you by the Fund from its investment company taxable
income are generally taxable to you as ordinary income to the extent of the Fund’s current and accumulated earnings and profits.
Certain properly reported distributions may, however, qualify (provided that holding period and other requirements are met by both the
Fund and the Common Shareholder) (i) for the dividends received deduction in the case of corporate Common Shareholders to the extent that
the Fund’s income consists of dividend income from U.S. corporations or (ii) in the case of individual Common Shareholders, as qualified
dividend income eligible to be taxed at a reduced maximum rate to the extent that the Fund receives qualified dividend income. Qualified
dividend income is, in general, dividend income from taxable domestic corporations and certain non-U.S. corporations. There can be no
assurance as to what portion of the Fund’s dividends will qualify for the dividends received deduction or for treatment as qualified
dividend income.

NTD: Subject
to Skadden tax review.

<div align='center'>23</div>

Distributions made to you
from an excess of net long-term capital gain over net short-term capital loss (“capital gain distributions”), including capital
gain distributions credited to you but retained by the Fund, are taxable to you as long-term capital gains if they have been properly
reported by the Fund, regardless of the length of time you have owned Common Shares. For individuals, long-term capital gains are generally
taxed at a reduced maximum rate.

If, for any calendar year,
the Fund’s total distributions exceed both the current taxable year’s