this paragraph, the term due date means, with respect to any preceding taxable year, the date prescribed by law (determined without regard to extensions) for filing the return of the tax imposed by this chapter for such taxable year. (c) Special rule for taxpayers with net capital losses (1) In general If a taxpayer has a net capital loss for any taxable year for which there is an increase in tax under subsection (a)(2), such increase in tax shall be reduced (but not below zero) by the credit equivalent of such net capital loss. (2) Credit equivalent For purposes of this subsection, the term credit equivalent means, with respect to any net capital loss for any taxable year, an amount equal to such loss multiplied by the rate of tax in effect under section 1(h)(1)(D) for such taxable year. (3) Coordination with carryovers of loss For purposes of subsection (b) of section 1212, the net capital loss for a taxable year to which paragraph (1) applies (determined without regard to this subsection) shall be reduced (but not below zero) by an amount equal to the amount of the reduction under paragraph (1) for such taxable year divided by the rate of tax in effect under section 1(h)(1)(D) for such taxable year. (d) Special rules for certain dividend distributions (1) Excess dividend distributions (A) In general For purposes of applying this section, any excess dividend shall be treated as gain from an applicable transfer of a nontradable covered asset occurring on the date such dividend is received. (B) Excess dividend For purposes of this part, the term excess dividend means, with respect to any nontradable covered asset which consists of stock in a C corporation, any dividend in respect of such stock received during any taxable year to the extent such dividend does not exceed its ratable portion of the total excess dividends (if any) for such taxable year. (C) Total excess dividends For purposes of this paragraph— (i) In general The term total excess dividends means, with respect to stock in a C corporation described