NEW YORK, Sept. 25, 2015 /PRNewswire/ -- Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. (the "Fund") announced today that on December 1, 2015, the Fund will change its tax status from a regulated investment company to a taxable C-Corporation under the Internal Revenue Code (the "Code"). The change is in response to the adoption of previously proposed regulations issued by the Internal Revenue Service (the "IRS"). The change in tax status will enable the Fund to invest up to 100% of its assets in Master Limited Partnerships ("MLPs") and to continue to pursue its investment objective of attractive total return, comprised of high current income and price appreciation. Currently, the Fund is limited to investing up to 25% of its assets directly in MLPs and up to 25% of its assets in its wholly-owned taxable subsidiary, which in turn can invest up to 100% of its assets in MLPs. The Fund will continue to remain a registered investment company under the Investment Company Act of 1940 after the change in tax status.
Currently, the Fund is not subject to U.S. Federal income tax under the Code provided it meets certain requirements and distributes substantially all of its net investment income and capital gains in a timely manner. As a C-Corporation, the Fund's income and gains will be taxed under Federal (currently at a maximum rate of 35%) and state income tax laws. In addition, distributions to shareholders from the Fund may also be taxed as ordinary income eligible for qualified dividend income treatment for U.S. individual taxpayers.
The change in tax status may have a negative impact on the Fund's net asset value (NAV) on December 1, 2015 as a result of recognition of deferred tax expense on Fund assets not held in its subsidiary. Based on the market value of these assets as of the date of this press release, there would be no impact to the Fund's NAV; however the actual amount may change based on portfolio and market activity through November 30, 2015. After December 1, 2015, the Fund's subsidiary will be dissolved.
More information is available at cohenandsteers.com.
Symbol:NYSE: CNS, MIE
About Cohen & Steers. Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City with offices in London, Hong Kong, Tokyo and Seattle.
SOURCE Cohen & Steers, Inc. (CNS); Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. (MIE)