AMENDMENTS RELATING TO REGULATED INVESTMENT COMPANY MODERNIZATION ACT OF 2010.

SEC. 205. AMENDMENTS RELATING TO REGULATED INVESTMENT COMPANY MODERNIZATION ACT OF 2010.(a) Amendments Relating to Section 101.—(1) Subsection (c) of section 101 of the Regulated Investment Company Modernization Act of 2010 is amended—(A) by striking “paragraph (2)” in paragraph (1) and inserting “paragraphs (2) and (3)”, and(B) by adding at the end the following new paragraph:“(3) Excise tax.—“(A) In general.—Except as provided in subparagraph (B), for purposes of section 4982 of the Internal Revenue Code of 1986, paragraphs (1) and (2) shall apply by substituting ‘the 1-year periods taken into account under subsection (b)(1)(B) of such section with respect to calendar years beginning after December 31, 2010’ for ‘taxable years beginning after the date of the enactment of this Act’.“(B) Election.—A regulated investment company may elect to apply subparagraph (A) by substituting ‘2011’ for ‘2010’. Such election shall be made at such time and in such form and manner as the Secretary of the Treasury (or the Secretary’s delegate) shall prescribe.”.(2) The first sentence of paragraph (2) of section 852(c) is amended—(A) by striking “and without regard to” and inserting “, without regard to”, and(B) by inserting “, and without regard to any capital loss arising on the first day of the taxable year by reason 128 STAT. 4026 of clauses (ii) and (iii) of section 1212(a)(3)(A)” before the period at the end.(b) Amendment Relating to Section 304.—Paragraph (1) of section 855(a) is amended by inserting “on or” before “before”.(c) Amendments Relating to Section 308.—(1) Paragraph (8) of section 852(b) is amended by redesignating subparagraph (E) as subparagraph (G) and by striking subparagraphs (C) and (D) and inserting the following new subparagraphs:“(C) Post-october capital loss.—For purposes of this paragraph, the term ‘post-October capital loss’ means—“(i) any net capital loss attributable to the portion of the taxable year after October 31, or“(ii) if there is no such loss—“(I) any net long-term capital loss attributable to such portion of the taxable year, or“(II) any net short-term capital loss attributable to such portion of the taxable year.“(D) Late-year ordinary loss.—For purposes of this paragraph, the term ‘late-year ordinary loss’ means the sum of any post-October specified loss and any post-December ordinary loss.“(E) Post-october specified loss.—For purposes of this paragraph, the term ‘post-October specified loss’ means the excess (if any) of—“(i) the specified losses (as defined in section 4982(e)(5)(B)(ii)) attributable to the portion of the taxable year after October 31, over“(ii) the specified gains (as defined in section 4982(e)(5)(B)(i)) attributable to such portion of the taxable year.“(F) Post-december ordinary loss.—For purposes of this paragraph, the term ‘post-December ordinary loss’ means the excess (if any) of—“(i) the ordinary losses not described in subparagraph (E)(i) and attributable to the portion of the taxable year after December 31, over“(ii) the ordinary income not described in subparagraph (E)(ii) and attributable to such portion of the taxable year.”.(2) Subparagraph (G) of section 852(b)(8), as so redesignated, is amended by striking “, (D)(i)(I), and (D)(ii)(I)” and inserting “and (E)”.(3) The first sentence of paragraph (2) of section 852(c), as amended by subsection (a), is amended—(A) by striking “, and without regard to” and inserting “, without regard to”, and(B) by inserting “, and with such other adjustments as the Secretary may prescribe” before the period at the end.(d) Amendments Relating to Section 402.—(1) Subparagraph (B) of section 4982(e)(6) is amended by inserting before the period at the end the following: “or which determines income by reference to the value of an item on the last day of the taxable year”.(2) Subparagraph (A) of section 4982(e)(7) is amended by striking “such company” and all that follows through “any 128 STAT. 4027 net ordinary loss” and inserting “such company may elect to determine its ordinary income and net ordinary loss (as defined in paragraph (2)(C)(ii)) for the calendar year without regard to any portion of any net ordinary loss”.(e) Clerical Amendment Relating to Section 201.—Subparagraph (A) of section 851(d)(2) is amended by inserting “of this paragraph” after “subparagraph (B)(i)”.(f) Effective Date.—(1) In general.—Except as provided in paragraph (2), the amendments made by this section shall take effect as if included in the provision of the Regulated Investment Company Modernization Act of 2010 to which they relate.(2) Savings provision.—In the case of an election by a regulated investment company under section 852(b)(8) of the Internal Revenue Code of 1986 with respect to any taxable year beginning before the date of the enactment of this Act, such company may treat the amendments made by paragraphs (1) and (2) of subsection (c) as not applying with respect to any such election.