124 STAT. 3554 PUBLIC LAW 111–325—DEC. 22, 2010 ‘‘(A) IN GENERAL.—In the case of a regulated invest- ment company which elects the application of this para- graph for any calendar year— ‘‘(i) the distributed amount with respect to such company for such calendar year shall be increased by the amount on which qualified estimated tax pay- ments are made by such company during such calendar year, and ‘‘(ii) the distributed amount with respect to such company for the following calendar year shall be reduced by the amount of such increase. ‘‘(B) QUALIFIED ESTIMATED TAX PAYMENTS.—For pur- poses of this paragraph, the term ‘qualified estimated tax payments’ means, with respect to any calendar year, pay- ments 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 enact- ment of this Act. SEC. 404. INCREASE IN REQUIRED DISTRIBUTION OF CAPITAL GAIN NET INCOME. (a) IN GENERAL.—Subparagraph (B) of section 4982(b)(1) is amended by striking ‘‘98 percent’’ and inserting ‘‘98.2 percent’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to calendar years beginning after the date of the enact- ment of this Act. TITLE V—OTHER PROVISIONS SEC. 501. REPEAL OF ASSESSABLE PENALTY WITH RESPECT TO LIABILITY FOR TAX OF REGULATED INVESTMENT COMPA- NIES. (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). (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after the date of the enact- ment of this Act. SEC. 502. MODIFICATION OF SALES LOAD BASIS DEFERRAL RULE FOR REGULATED INVESTMENT COMPANIES. (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 disposition,’’. 26 USC 860 note. 26 USC 4982 note. 26 USC 4982. 26 USC 4982 note.
