H.R. 3360 (109th): To amend the Internal Revenue Code of 1986 to enhance tax incentives for small property and casualty ...

...insurance companies.

109th Congress, 2005–2006. Text as of Jul 20, 2005 (Introduced).

Status & Summary | PDF | Source: GPO

I

109th CONGRESS

1st Session

H. R. 3360

IN THE HOUSE OF REPRESENTATIVES

July 20, 2005

introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to enhance tax incentives for small property and casualty insurance companies.

1.

Clarification of definition of gross receipts for purposes of determining tax exemption of small property and casualty insurance companies

(a)

In general

Section 501(c)(15) of the Internal Revenue Code is amended by adding at the end the following:

(D)

For purposes of subparagraph (A), the term gross receipts means the gross amount received during the taxable year from the items described in section 834(b) and premiums (including deposits and assessments).

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2003.

2.

Increase in limitation for alternative tax liability for small property and casualty insurance companies

(a)

In general

Clause (i) of section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended to read as follows:

(i)

the net written premiums (or, if greater, direct written premiums) for the taxable year do not exceed $1,971,000, and

.

(b)

Inflation adjustment

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 2006, the $1,971,000 amount set forth in subparagraph (A) shall be increased by an amount equal to—

(i)

$1,971,000, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting `calendar year 2005' 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, 2005.