Support for H.R. 654: Tax Treatment of Qualified Dividend Reinvestment Plans

The National Association of Regulatory Utility Commissioners (NARUC) is urging the House Committee on Ways and Means to support H.R. 654, which relates to the tax treatment of qualified dividend reinvestment plans. The NARUC argues that the low personal savings rate in the United States and the high inflation rate have led investors to shift their portfolios away from utility stocks, making it difficult for utility companies to raise capital. They believe that allowing shareholders to defer taxation on reinvested dividends used to purchase new equity will benefit both shareholders and utilities. The NARUC is interested in presenting their views at future hearings before the committee.