Official Summary

11/17/2010--Introduced.Regulated Investment Company Modernization Act of 2010 - Amends the Internal Revenue Code, with respect to regulated investment companies (RICs), to: (1) allow an unlimited carryforward of the net capital losses of RICs; (2) eliminate restrictions on the investment o

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Official Summary

11/17/2010--Introduced.Regulated Investment Company Modernization Act of 2010 - Amends the Internal Revenue Code, with respect to regulated investment companies (RICs), to:
(1) allow an unlimited carryforward of the net capital losses of RICs;
(2) eliminate restrictions on the investment of RICs in commodities;
(3) limit penalties for the failure of RICs to satisfy gross income and asset tests;
(4) modify rules for allocating RIC capital gain dividend distributions;
(5) include certain nondeductible items of RIC income in earnings and profit calculations;
(6) allow RICs that invest exclusively in the shares of other RICs to pass through to their shareholders tax-exempt interest and foreign tax credits, without regard to certain investment limitations;
(7) modify rules relating to the declaration of RIC dividends, return of capital distributions, and stock redemptions;
(8) allow certain RICs with shares that are redeemable upon demand to treat distributions in redemption of stock as an exchange of fund shares or a dividend for tax purposes;
(9) allow a deferral of end-of-year losses of RICs;
(10) exempt certain regularly declared exempt-interest dividends of RICs from holding period requirements;
(11) increase the annual amount of capital gain net income of RICs required to be distributed; and
(12) modify excise tax and penalty rules applicable to RICs.

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