summary
Introduced
03/11/2025
03/11/2025
In Committee
03/11/2025
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 (58)
Beth Van Duyne (R)*,
Gabe Amo (D),
Michael Baumgartner (R),
Joyce Beatty (D),
Brendan Boyle (D),
Mike Carey (R),
Emanuel Cleaver (D),
Madeleine Dean (D),
Suzan DelBene (D),
Jake Ellzey (R),
Pat Fallon (R),
Laura Gillen (D),
Craig Goldman (R),
Vicente Gonzalez (D),
Sam Graves (R),
Glenn Grothman (R),
Brett Guthrie (R),
Pat Harrigan (R),
Chrissy Houlahan (D),
Julie Johnson (D),
Bill Keating (D),
Mike Kelly (R),
Young Kim (R),
David Kustoff (R),
Darin LaHood (R),
Mike Lawler (R),
Seth Magaziner (D),
Nicole Malliotakis (R),
Sarah McBride (D),
April McClain-Delaney (D),
Richard McCormick (R),
Rob Menendez (D),
Carol Miller (R),
Max Miller (R),
Blake Moore (R),
Nathaniel Moran (R),
Joe Morelle (D),
Seth Moulton (D),
Burgess Owens (R),
Jimmy Panetta (D),
Scott Peters (D),
Stacey Plaskett (D),
Deborah Ross (D),
Michael Rulli (R),
John Rutherford (R),
Linda Sánchez (D),
Brad Schneider (D),
David Scott (D),
Pete Sessions (R),
Terri Sewell (D),
Brad Sherman (D),
Lloyd Smucker (R),
Bryan Steil (R),
Tom Suozzi (D),
Claudia Tenney (R),
Lori Trahan (D),
Nydia Velázquez (D),
Rudy Yakym (R),
Last Action
Referred to the House Committee on Ways and Means. (on 03/11/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/2089/all-info |
| BillText | https://www.congress.gov/119/bills/hr2089/BILLS-119hr2089ih.pdf |
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