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S. 905 (114th): An original bill to amend the Internal Revenue Code of 1986 to increase the limitation on eligibility for the alternative tax for certain small insurance companies.

The text of the bill below is as of Apr 14, 2015 (Placed on Calendar in the Senate).


II

Calendar No. 39

114th CONGRESS

1st Session

S. 905

[Report No. 114–16]

IN THE SENATE OF THE UNITED STATES

April 14, 2015

, from the Committee on Finance, reported the following original bill; which was read twice and placed on the calendar

A BILL

To amend the Internal Revenue Code of 1986 to increase the limitation on eligibility for the alternative tax for certain small insurance companies.

1.

Increase in limitation on eligibility for alternative tax for certain small insurance companies

(a)

Increase in limitation on premiums

(1)

In general

Clause (i) of section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $1,200,000 and inserting $2,200,000.

(2)

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 2015, the dollar amount set forth in subparagraph (A)(i) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2013 for calendar year 1992 in subparagraph (B) thereof.

If the amount as adjusted under the preceding sentence is not a multiple of $50,000, such amount shall be rounded to the next lowest multiple of $50,000.

.

(b)

Study

Not later than February 11, 2016, the Secretary of the Treasury shall submit to the Committee on Finance of the Senate a report on the abuse of captive insurance companies for estate planning purposes. Such report shall include legislative recommendations for addressing any such abuses.

(c)

Effective Date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

2.

Increase in continuous levy

(a)

In general

Paragraph (3) of section 6331(h) of the Internal Revenue Code of 1986 is amended by striking 30 percent and inserting 45 percent.

(b)

Effective date

The amendment made by this section shall apply to payments made after 180 days after the date of the enactment of this Act.

April 14, 2015

Read twice and placed on the calendar