The House Wednesday passed the Regulated Investment Company Modernization Act, which updates mutual fund tax regulations for the first time in more than 20 years.

Most notably, the new regulation will permit mutual funds to earn income from commodities and simplify rules on preferential dividends. It will also simplify excise taxes and streamline dual tax rules that apply to mutual funds: taxes on fund complexes as regulated investment companies and corporate tax rules on redemptions and dividends.

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