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‘‘(7) ELECTIVE DEFERRAL OF CERTAIN ORDI-
NARY LOSSES.—Except as provided in regulations 
prescribed by the Secretary, in the case of a regu-
lated investment company which has a taxable year 
other than the calendar year— 
‘‘(A) such company may elect to determine 
its ordinary income for the calendar year with-
out regard to any net ordinary loss (determined 
without regard to specified gains and losses 
taken into account under paragraph (5)) which 
is attributable to the portion of such calendar 
year which is after the beginning of the taxable 
year which begins in such calendar year, and 
‘‘(B) any amount of net ordinary loss not 
taken into account for a calendar year by rea-
son of subparagraph (A) shall be treated as 
arising on the 1st day of the following calendar 
year.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
the date of the enactment of this Act. 
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SEC. 403. DISTRIBUTED AMOUNT FOR EXCISE TAX PUR-
POSES DETERMINED ON BASIS OF TAXES 
PAID BY REGULATED INVESTMENT COM-
PANY. 
(a) IN GENERAL.—Subsection (c) of section 4982 is 
amended by adding at the end the following new para-
graph: 
‘‘(4) SPECIAL RULE FOR ESTIMATED TAX PAY-
MENTS.— 
‘‘(A) IN GENERAL.—In the case of a regu-
lated investment company which elects the ap-
plication of this paragraph for any calendar 
year— 
‘‘(i) the distributed amount with re-
spect to such company for such calendar 
year shall be increased by the amount on 
which qualified estimated tax payments are 
made by such company during such cal-
endar year, and 
‘‘(ii) the distributed amount with re-
spect to such company for the following 
calendar year shall be reduced by the 
amount of such increase. 
‘‘(B) QUALIFIED
ESTIMATED
TAX
PAY-
MENTS.—For purposes of this paragraph, the 
term ‘qualified estimated tax payments’ means, 
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with respect to any calendar year, payments of 
estimated tax of a tax described in paragraph 
(1)(B) for any taxable year which begins (but 
does not end) in such calendar year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to calendar years beginning after 
the date of the enactment of this Act. 
SEC. 404. INCREASE IN REQUIRED DISTRIBUTION OF CAP-
ITAL GAIN NET INCOME. 
(a) IN GENERAL.—Subparagraph (B) of section 
4982(b)(1) is amended by striking ‘‘98 percent’’ and in-
serting ‘‘98.2 percent’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
the date of the enactment of this Act. 
TITLE V—OTHER PROVISIONS 
SEC. 501. REPEAL OF ASSESSABLE PENALTY WITH RE-
SPECT TO LIABILITY FOR TAX OF REGU-
LATED INVESTMENT COMPANIES. 
(a) IN GENERAL.—Part I of subchapter B of chapter 
68 is amended by striking section 6697 (and by striking 
the item relating to such section in the table of sections 
of such part). 
(b) CONFORMING
AMENDMENT.—Section 860 is 
amended by striking subsection (j). 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 502. MODIFICATION OF SALES LOAD BASIS DEFERRAL 
RULE FOR REGULATED INVESTMENT COMPA-
NIES. 
(a) IN GENERAL.—Subparagraph (C) of section 
852(f)(1) is amended by striking ‘‘subsequently acquires’’ 
and inserting ‘‘acquires, during the period beginning on 
the date of the disposition referred to in subparagraph (B) 
and ending on January 31 of the calendar year following 
the calendar year that includes the date of such disposi-
tion,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to charges incurred in taxable 
years beginning after the date of the enactment of this 
Act. 
TITLE VI—PAYGO COMPLIANCE 
SEC. 601. PAYGO COMPLIANCE. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
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vided that such statement has been submitted prior to the 
vote on passage. 
Passed the House of Representatives September 28, 
2010. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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Calendar No. 640 
111TH CONGRESS 
2D SESSION 
H. R. 4337 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
modify certain rules applicable to regulated in-
vestment companies, and for other purposes. 
NOVEMBER 15, 2010 
Read the second time and placed on the calendar 
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