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HR 2089
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Generating Retirement Ownership through Long-Term Holding

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

Introduced Mar 11, 2025

Latest action (Mar 11, 2025) Referred to the House Committee on Ways and Means.

Referred to
Ways and Means Committee
Policy area
Taxation

Summary

This bill amends the tax code to allow individuals to defer recognizing capital gains from dividend distributions that are automatically reinvested in mutual fund shares through a dividend reinvestment plan. Instead of recognizing the gain when the dividend is received, the taxpayer defers recognition until the shares are sold or redeemed, at which time the deferred gain is recognized in proportion to the shares sold. Shares acquired through reinvestment are treated as held for more than one year for purposes of long-term capital gains tax treatment. The bill does not apply to dependents or to estates and trusts, and takes effect for tax years ending after enactment.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)
122 cosponsors

Money behind the sponsor

Top reported contributors to Beth Van Duyne’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.

  • NULL $51,100
  • INSPERITY $14,800
  • AMERICAN AIRLINES $14,473
  • BANK OF THE WEST $14,200
  • CHARTER BROKERAGE LLC $13,862

Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Beth Van Duyne → · Outside spending →

Actions (2)
  1. Mar 11, 2025 Referred to the House Committee on Ways and Means. · house
  2. Mar 11, 2025 Introduced in House

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

  • S 1839 — Generating Retirement Ownership through Long-Term Holding · Introduced May 21, 2025 · Cong. 119 82%
  • HR 1213 — Employee Pension Portability and Accountability Act of 1999 · Introduced Apr 16, 1999 · Cong. 106 64%
  • HR 5169 — Retire through Ownership Act · Introduced Jan 14, 2026 · Cong. 119 64%
  • S 930 — A bill to amend the Internal Revenue Code of 1986 to exclude from gross income capital gains from the sale of certain farmland property which are reinvested in individual retirement plans. · Introduced Mar 11, 2025 · Cong. 119 64%
  • HR 684 — Protecting American Savers and Retirees Act · Introduced Jan 23, 2025 · Cong. 119 63%
  • HR 2186 — To amend the Internal Revenue Code of 1986 to restore the limitation on downward attribution of stock ownership in applying constructive ownership rules. · Introduced Mar 18, 2025 · Cong. 119 63%

Text versions (1)
  • Introduced in House · Mar 11, 2025

Only one text version is on file, so there’s no earlier version to compare against yet.

Full text

IN THE HOUSE OF REPRESENTATIVES

March 11, 2025

Ms. Van Duyne (for herself and Ms. Sewell) introduced the following bill; which was referred to the Committee on Ways and Means

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Generating Retirement Ownership through Long-Term Holding”.

SEC. 2. DEFERRAL OF REINVESTED CAPITAL GAIN DIVIDENDS OF REGULATED INVESTMENT COMPANIES.

(a) In General.—Part III of subchapter O of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 1045 the following new section:

“SEC. 1046. REINVESTED CAPITAL GAIN DIVIDENDS OF REGULATED INVESTMENT COMPANIES.

“(a) Nonrecognition of Gain.—In the case of an individual, no gain shall be recognized on the receipt of a capital gain dividend distributed by a regulated investment company to which part I of subchapter M applies if such capital gain dividend is automatically reinvested in additional shares of the company pursuant to a dividend reinvestment plan.

“(b) Definitions and Special Rules.—For purposes of this section—

“(1) Capital gain dividend.—The term ‘capital gain dividend’ has the meaning given to such term by section 852(b)(3)(C).

“(2) Recognition of deferred capital gain dividends.—

“(A) In general.—Gain treated as unrecognized in accordance with subsection (a) shall be recognized in accordance with subparagraph (B)—

“(i) upon a subsequent sale or redemption by such individual of stock in the distributing company, or

“(ii) upon the death of the individual.

“(B) Gain recognition.—

“(i) In general.—Upon a sale or redemption described in subparagraph (A), the taxpayer shall recognize that portion of total gain treated as unrecognized in accordance with subsection (a) (and not previously recognized pursuant to this subparagraph) that is equivalent to the portion of the taxpayer’s shares in the distributing company that are sold or redeemed.

“(ii) Death of individual.—Except as provided by regulations, any portion of such total gain not recognized under clause (i) prior to the taxpayer’s death shall be recognized upon the death of the taxpayer and included in the taxpayer’s gross income for the taxable year ending on the date of the taxpayer’s death.

“(3) Holding period.—The taxpayer’s holding period in shares acquired through reinvestment of a capital gain dividend to which subsection (a) applies shall be determined by treating the shareholder as having held such shares for one year and a day as of the date such shares are acquired.

“(c) Section Not To Apply to Certain Taxpayers.—This section shall not apply to—

“(1) an individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins, or

“(2) an estate or trust.

“(d) Regulations.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.”.

(b) Conforming Amendments.—

(1) Section 852(b)(3)(B) of such Code is amended by adding at the end the following new sentence: “For rules regarding nonrecognition of gain with respect to reinvested capital gain dividends received by individuals, see section 1046.”.

(2) The table of sections for part III of subchapter O of chapter 1 of such Code is amended by inserting after the item relating to section 1045 the following new item:

“Sec. 1046. Reinvested capital gain dividends of regulated investment companies.”.

(c) Effective Date.—The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. <all>

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