< Back to S. 3099 (106th Congress, 1999–2000)

Text of A bill to amend the Internal Revenue Code of 1986 to clarify the exemption from tax for small property and ...

...small property and casualty insurance companies, and for other purposes.

This bill was introduced on September 22, 2000, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 22, 2000 (Introduced).

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Source: GPO

S 3099 IS

106th CONGRESS

2d Session

S. 3099

To amend the Internal Revenue Code of 1986 to clarify the exemption from tax for small property and casualty insurance companies, and for other purposes.

IN THE SENATE OF THE UNITED STATES

September 22, 2000

Mr. GRAMS introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to clarify the exemption from tax for small property and casualty insurance companies, and for other purposes.

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

SECTION 1. CLARIFICATION OF EXEMPTION FROM TAX FOR SMALL PROPERTY AND CASUALTY INSURANCE COMPANIES.

    (a) ANTI-ABUSE RULE- Paragraph (15) of section 501(c) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph:

        ‘(C) Subparagraph (A) shall apply only to a company or association which is solely and directly owned by its policyholders and is organized and operates only in 1 State.’

    (b) PREMIUM LIMITATIONS INCREASED TO REFLECT INFLATION SINCE FIRST IMPOSED-

      (1)(A) Subparagraph (A) of section 501(c)(15) of such Code is amended by striking ‘$350,000’ and inserting ‘$531,000’.

      (B) Paragraph (15) of section 501(c) of such Code is amended by adding at the end the following new subparagraph:

        ‘(E) In the case of any taxable year beginning in a calendar year after 2000, the $531,000 amount set forth in subparagraph (A) shall be increased by an amount equal to--

          ‘(i) $531,000, multiplied by

          ‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1999’ for ‘calendar year 1992’ in subparagraph (B) thereof.

        If the amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.’

      (2)(A) Clause (i) of section 831(b)(2)(A) of such Code is amended to read as follows:

          ‘(i) the net written premiums (or, if greater, direct written premiums) for the taxable year exceed the amount applicable under section 501(c)(15)(A) but do not exceed $1,819,000, and’.

      (B) Paragraph (2) of section 831(b) of such Code is amended by adding at the end the following new subparagraph:

        ‘(C) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year after 2000, the $1,819,000 amount set forth in subparagraph (A) shall be increased by an amount equal to--

          ‘(i) $1,819,000, multiplied by

          ‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1999’ for ‘calendar year 1992’ in subparagraph (B) thereof.

        If the amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2000.