118 STAT. 1184 PUBLIC LAW 108–311—OCT. 4, 2004 SEC. 402. AMENDMENTS RELATED TO JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT OF 2003. (a) AMENDMENTS RELATED TO SECTION 302 OF THE ACT.— (1) Clause (i) of section 1(h)(1)(D) is amended by inserting ‘‘(determined without regard to paragraph (11))’’ after ‘‘net cap ital gain’’. (2) Subclause (I) of section 1(h)(11)(B)(iii) is amended— (A) by striking ‘‘section 246(c)(1)’’ and inserting ‘‘section 246(c)’’, (B) by striking ‘‘120 day period’’ and inserting ‘‘121 day period’’, and (C) by striking ‘‘90 day period’’ and inserting ‘‘91 day period’’. (3) Clause (ii) of section 1(h)(11)(D) is amended by striking ‘‘an individual’’ and inserting ‘‘a taxpayer to whom this section applies’’. (4) Paragraph (4) of section 691(c) is amended by striking ‘‘of any gain’’. (5)(A) Subparagraph (B) of section 854(b)(1) is amended— (i) by striking clauses (iii) and (iv), and (ii) by amending clause (i) to read as follows: ‘‘(i) IN GENERAL.—In any case in which— ‘‘(I) a dividend is received from a regulated investment company (other than a dividend to which subsection (a) applies), ‘‘(II) such investment company meets the requirements of section 852(a) for the taxable year during which it paid such dividend, and ‘‘(III) the qualified dividend income of such investment company for such taxable year is less than 95 percent of its gross income, then, in computing qualified dividend income, there shall be taken into account only that portion of such dividend designated by the regulated investment com pany.’’. (B) Subparagraph (C) of section 854(b)(1) is amended to read as follows: ‘‘(C) LIMITATIONS.— ‘‘(i) SUBPARAGRAPH (A).—The aggregate amount which may be designated as dividends under subpara graph (A) shall not exceed the aggregate dividends received by the company for the taxable year. ‘‘(ii) SUBPARAGRAPH (B).—The aggregate amount which may be designated as qualified dividend income under subparagraph (B) shall not exceed the sum of— ‘‘(I) the qualified dividend income of the com pany for the taxable year, and ‘‘(II) the amount of any earnings and profits which were distributed by the company for such taxable year and accumulated in a taxable year with respect to which this part did not apply.’’. (C) Paragraph (2) of section 854(b) is amended by striking ‘‘as a dividend for purposes of the maximum rate under section 1(h)(11) and’’ and inserting ‘‘as qualified dividend income for purposes of section 1(h)(11) and as dividends for purposes of’’. (D) Paragraph (5) of section 854(b) is amended to read as follows: 26 USC 1.
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