MODIFICATION OF RULES FOR SPILLOVER DIVIDENDS OF REGULATED INVESTMENT COMPANIES.

SEC. 304. MODIFICATION OF RULES FOR SPILLOVER DIVIDENDS OF REGULATED INVESTMENT COMPANIES.(a) Deadline for Declaration of Dividend.—Paragraph (1) of section 855(a) is amended to read as follows:“(1) declares a dividend before the later of—“(A) the 15th day of the 9th month following the close of the taxable year, or“(B) in the case of an extension of time for filing the company’s return for the taxable year, the due date for filing such return taking into account such extension, and”.(b) Deadline for Distribution of Dividend.—Paragraph (2) of section 855(a) is amended by striking “the first regular dividend payment” and inserting “the first dividend payment of the same type of dividend”.124 STAT. 3549(c) Short-term Capital Gain.—Subsection (a) of section 855 is amended by adding at the end the following: “For purposes of paragraph (2), a dividend attributable to any short-term capital gain with respect to which a notice is required under the Investment Company Act of 1940 shall be treated as the same type of dividend as a capital gain dividend.”.(d) Effective Date.—The amendments made by this section shall apply to distributions in taxable years beginning after the date of the enactment of this Act.