Bill

Bill > HR2089


US HR2089

US HR2089
Generating Retirement Ownership through Long-Term Holding


summary

Introduced
03/11/2025
In Committee
03/11/2025
Crossed Over
Passed
Dead

Introduced Session

119th Congress

Bill Summary

A BILL To amend the Internal Revenue Code of 1986 to allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies.

AI Summary

This bill introduces a new tax provision that allows individual investors to defer recognizing capital gains from reinvested dividends in regulated investment companies (RICs, commonly known as mutual funds). Under the proposed law, when an individual automatically reinvests capital gain dividends back into the same investment company, they would not have to pay taxes on those gains immediately. Instead, the tax liability would be postponed until the individual sells or redeems their shares, or upon their death. The bill specifies that when shares are sold, the taxpayer will recognize a proportional amount of the previously deferred gains. Additionally, the bill sets the holding period for reinvested shares as one year and a day, and includes some limitations, such as not applying to individuals who are claimed as dependents by another taxpayer or to estates and trusts. The legislation aims to provide tax flexibility for individual investors by allowing them to reinvest gains without triggering an immediate tax event, potentially encouraging longer-term investment strategies. The proposed changes would apply to taxable years ending after the date of the Act's enactment.

Committee Categories

Budget and Finance

Sponsors (126)

Beth Van Duyne (R)* Gabe Amo (D),  Don Bacon (R),  Troy Balderson (R),  Tom Barrett (R),  Michael Baumgartner (R),  Joyce Beatty (D),  Jack Bergman (R),  Don Beyer (D),  Sanford Bishop (D),  Mike Bost (R),  Brendan Boyle (D),  Nikki Budzinski (D),  Mike Carey (R),  Buddy Carter (R),  Emanuel Cleaver (D),  James Comer (R),  Joe Courtney (D),  Jeff Crank (R),  Sharice Davids (D),  Don Davis (D),  Monica De La Cruz (R),  Madeleine Dean (D),  Suzan DelBene (D),  Byron Donalds (R),  Troy Downing (R),  Neal Dunn (R),  Jake Ellzey (R),  Ron Estes (R),  Gabe Evans (R),  Mike Ezell (R),  Pat Fallon (R),  Shomari Figures (D),  Michelle Fischbach (R),  Brian Fitzpatrick (R),  Chuck Fleischmann (R),  Virginia Foxx (R),  Andrew Garbarino (R),  Laura Gillen (D),  Craig Goldman (R),  Vicente Gonzalez (D),  Maggie Goodlander (D),  Josh Gottheimer (D),  Sam Graves (R),  Glenn Grothman (R),  Brett Guthrie (R),  Mike Haridopolos (R),  Pat Harrigan (R),  Ashley Hinson (R),  Steven Horsford (D),  Chrissy Houlahan (D),  Jeff Hurd (R),  Darrell Issa (R),  Brian Jack (R),  Julie Johnson (D),  Bill Keating (D),  Mike Kelly (R),  Timothy Kennedy (D),  Kevin Kiley (I),  Young Kim (R),  David Kustoff (R),  Darin LaHood (R),  Greg Landsman (D),  John Larson (D),  George Latimer (D),  Bob Latta (R),  Mike Lawler (R),  Susie Lee (D),  Ryan Mackenzie (R),  Seth Magaziner (D),  Nicole Malliotakis (R),  Sarah McBride (D),  April McClain-Delaney (D),  Richard McCormick (R),  Addison McDowell (R),  Morgan McGarvey (D),  Rob Menendez (D),  Carol Miller (R),  Max Miller (R),  Mariannette Miller-Meeks (R),  Barry Moore (R),  Blake Moore (R),  Tim Moore (R),  Nathaniel Moran (R),  Joe Morelle (D),  Seth Moulton (D),  Frank Mrvan (D),  Joe Neguse (D),  Troy Nehls (R),  Zach Nunn (R),  Johnny Olszewski (D),  Burgess Owens (R),  Jimmy Panetta (D),  Scott Peters (D),  Brittany Pettersen (D),  August Pfluger (R),  Stacey Plaskett (D),  Deborah Ross (D),  Michael Rulli (R),  John Rutherford (R),  María Salazar (R),  Linda Sánchez (D),  Brad Schneider (D),  David Scott (D),  Pete Sessions (R),  Terri Sewell (D),  Brad Sherman (D),  Lloyd Smucker (R),  Eric Sorensen (D),  Pete Stauber (R),  Bryan Steil (R),  Marilyn Strickland (D),  Tom Suozzi (D),  Claudia Tenney (R),  William Timmons (R),  Lori Trahan (D),  Mike Turner (R),  Matt Van Epps (R),  Derrick Van Orden (R),  Marc Veasey (D),  Nydia Velázquez (D),  Nikema Williams (D),  Roger Williams (R),  Joe Wilson (R),  Rob Wittman (R),  Rudy Yakym (R), 

Last Action

Referred to the House Committee on Ways and Means. (on 03/11/2025)

Bill Topics

Macroeconomics
  • ‐ Taxation, Tax Policy, and Tax Reform
Social Welfare
  • ‐ Retirement Issues

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location Created
State Bill Page https://www.congress.gov/bill/119th-congress/house-bill/2089/all-info 03/12/2025
BillText https://www.congress.gov/119/bills/hr2089/BILLS-119hr2089ih.pdf 03/25/2025
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