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Generating Retirement Ownership through Long-Term Holding

H.R. 2089 Rep. Beth Van Duyne (R-TX-24) In committee
Bill text PDF
  1. Introduced Mar 11
  2. Committee Mar 11
  3. Passed House Next
  4. Passed Senate Not yet
  5. To President Not yet
  6. Law Not yet
Where it stands
In committee, Mar 11, 2025Next: House vote
596d ago Mar 11, 2025: Referred to the House Committee on Ways and Means.
Final votes
No roll callsNo recorded vote on this bill yet
Lobbying
4companies, 16 filings
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Companies lobbying on this bill

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Summary

This bill allows individual investors to defer taxes on capital gain dividends from regulated investment companies (like mutual funds) if those dividends are automatically reinvested into more shares of the same company through a dividend reinvestment plan. The deferred gain is taxed later when the investor sells or redeems the shares, or upon the investor's death. The bill adds a new section 1046 to the Internal Revenue Code and makes related conforming amendments.

Sec. 2, Deferral of reinvested capital gain dividends: For individuals, no gain is recognized on capital gain dividends from regulated investment companies that are automatically reinvested under a dividend reinvestment plan. The term 'capital gain dividend' is defined by existing tax law. The deferred gain is recognized when the individual sells or redeems shares (proportionally to the shares sold) or upon the individual's death (included in final year's gross income). Shares acquired through reinvestment are treated as held for one year and a day from acquisition. The deferral does not apply to individuals who are claimed as dependents by another taxpayer, or to estates or trusts. The Treasury Secretary may issue regulations to implement this section.

Conforming amendments: The bill updates section 852(b)(3)(B) of the tax code to reference the new nonrecognition rule, and adds section 1046 to the table of sections for part III of subchapter O.

Effective date: The changes apply to taxable years ending after the date the bill is enacted.

Summary of the bill text as introduced in House (Mar 11, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.

Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.