S. 1293Senate109th Congress (2005-2007)In Committee

A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies.

Introduced June 23, 2005

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

June 23, 2005

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SenateIntro Referral

Introduced in Senate

June 23, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S7297-7298)

June 23, 2005

SenateIntro Referral

Read twice and referred to the Committee on Finance.

June 23, 2005

Floor Debate

12 members

What members said about S. 1293 on the floor

7 Republicans5 Democrats
Max Baucus
Sen. Max BaucusD-MT · Jun 23, 2005

Mr. President, today I introduce the Trade Adjustment Assistance for Firms Reorganization Act. The Trade Adjustment Assistance for Firms program assists hundreds of mostly small and medium-sized…

John McCain
Sen. John McCainR-AZ · Jun 23, 2005

Mr. President, I am pleased to introduce the Pascua Yaqui Mineral Rights Act of 2005 to provide for acquisition of subsurface mineral interests in land owned by the Pascua Yaqui tribe and land held…

Tom Harkin
Sen. Tom HarkinD-IA · Jun 23, 2005

Mr. President, I rise today to introduce a piece of legislation to fix a huge oversight in pension policy. In the early 1990s, a large number of U.S. companies began a process of switching their…

Rick Santorum
Sen. Rick SantorumR-PA · Jun 23, 2005

Mr. President, I rise to introduce legislation that would help people who ``telework'' or work from home, to receive a tax credit. Teleworkers are people who work on-line from home--whether a few…

Jon S. Corzine
Sen. Jon S. CorzineD-NJ · Jun 23, 2005

Mr. President, I rise today to reintroduce my legislation, the Patient and Physician Safety and Protection Act of 2005, to limit medical resident work hours to 80 hours a week and to provide real…

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Frank R. Lautenberg
Sen. Frank R. LautenbergD-NJ · Jun 23, 2005

Mr. President, I rise to introduce the ``Community Broadband Act of 2005.'' I am pleased to be joined in this effort by Senator McCain of Arizona. This legislation will promote economic development,…

Sam Brownback
Sen. Sam BrownbackR-KS · Jun 23, 2005

Mr. President, I rise today to introduce the Parents Tax Relief Act. The Parents Tax Relief Act would help restore to families the pride- of-place, which they enjoyed during the early days of the…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Jun 23, 2005

Mr. President, I rise today with my friends and colleagues--Senators Reed, Lautenberg, Corzine, Sarbanes, and Kerry--to introduce an important piece of legislation, the MediKids Health Insurance Act…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Jun 23, 2005

Mr. President, I ask unanimous consent that my bill, the Ninth Circuit Judgeship and Reorganization Act of 2005, be printed in the Record. Mr. President, at the very beginning of the Alaska Native…

John Ensign
Sen. John EnsignR-NV · Jun 23, 2005

Mr. President, I come before the Senate today about a very serious issue that is threatening the disbursal of justice in the western United States. My home State of Nevada, along with eight other…

Jim Bunning
Sen. Jim BunningR-KY · Jun 23, 2005

Mr. President, I rise today to introduce legislation to allow affiliated life and non-life insurance companies to file consolidated tax returns. The current outdated rules do not allow such…

Jim DeMint
Sen. Jim DeMintR-SC · Jun 23, 2005

Mr. President, it's time to stop the raid on Social Security. For over twenty years, Congress has maintained the misguided practice of over-collecting Social Security taxes and spending them on other…

Bill Text

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Introduced in SenateIssued June 23, 2005

II

109th CONGRESS

1st Session

S. 1293

IN THE SENATE OF THE UNITED STATES

June 23, 2005

Mr. Bunning (for himself, Mr. Conrad, Mr. Lott, Mr. Smith, and Mrs. Lincoln) 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 permit the consolidation of life insurance companies with other companies.

1.

Consolidation of life insurance companies with other companies permitted

(a)

In general

Section 1504(b) of the Internal Revenue Code of 1986 (defining includible corporation) is amended by striking paragraph (2) and by redesignating paragraphs (3) through (8) as paragraphs (2) through (7), respectively.

(b)

Conforming amendments

(1)

Section 1503 of the Internal Revenue Code of 1986 is amended by striking subsection (c) (relating to special rule for application of certain losses against income of insurance companies taxed under section 801) and by redesignating subsections (d), (e), and (f) as subsections (b), (c), and (d), respectively.

(2)

Section 1504 of such Code is amended by striking subsection (c) and by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively.

(3)

Section 243(b)(2)(A) of such Code is amended by striking sections 1504(b)(2), 1504(b)(4), and 1504(c) and inserting section 1504(b)(3).

(4)

Section 805(a)(4)(E) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2).

(5)

Section 818(e)(1) of such Code is amended to read as follows:

(1)

Items of companies other than insurance companies

If an affiliated group includes members which are and which are not taxed under section 801, all items of the members of such group which are not taxed under section 801 shall not be taken into account in determining the amount of the tentative LICTI of members of such group which are taxed under section 801.

.

(6)

Section 832(b)(5)(D)(ii)(II) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2).

(7)

Section 864(e)(5)(A) of such Code is amended by striking paragraph (4) and inserting paragraph (3).

(8)

Section 936(i)(5)(A) of such Code is amended by striking section 1504(b)(3) or (4) and inserting section 1504(b)(2) or (3).

(9)

Section 952(c)(1)(B)(vii)(II) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2).

(10)

Section 953(d)(3) of such Code is amended by striking 1503(d) and inserting 1503(c).

(11)

Section 954(h)(4)(F)(ii) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2).

(12)

Section 6166(b)(10)(B)(ii)(V) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2).

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2004.

2.

Phase-In of application of certain losses against income of insurance companies

(a)

Phase-in

(1)

In general

For taxable years beginning after December 31, 2004, and before January 1, 2011, if—

(A)

an affiliated group includes 1 or more domestic insurance companies subject to tax under section 801 of the Internal Revenue Code of 1986, and

(B)

the consolidated taxable income of the members of the group not taxed under such section 801 results in a consolidated net operating loss for such taxable year,

then, under regulations prescribed by the Secretary of the Treasury or his delegate, the amount of such loss which cannot be absorbed in the applicable carryback periods against the taxable income of such members not taxed under such section 801 shall be taken into account in determining the consolidated taxable income of the affiliated group for such taxable year to the extent of the applicable percentage of such loss or the applicable percentage of the taxable income of the members taxed under such section 801, whichever is less. The unused portion of such loss shall be available as a carryover, subject to the same limitations (but determined based on the applicable percentage with respect to the year to which carried and applicable to the sum of the loss for the carryover year and the loss (or losses) carried over to such year), in applicable carryover years.
(2)

Applicable percentage

For purposes of paragraph (1), the applicable percentage shall be determined in accordance with the following table:

 The applicable
 For taxable years beginning in:percentage is:
200540 
200650 
200760 
200870 
200980 
201090.
(b)

No carryback before January 1, 2005

To the extent that a consolidated net operating loss is allowed or increased by reason of this section or the amendments made by this Act, such loss (or increase in such loss, as the case may be) may not be carried back to a taxable year beginning before January 1, 2005.

(c)

Nontermination of group

No affiliated group shall terminate solely as a result of this section or the amendments made by this Act.

(d)

Subsidiary stock basis adjustments

A member corporation’s basis in the stock of a subsidiary corporation shall be adjusted upon consolidation to reflect the preconsolidation income, gain, deduction, loss, distributions, and other relevant amounts during a period when such corporations were members of an affiliated group (determined without regard to section 1504(b)(2) of the Internal Revenue Code of 1986 as in effect on the day before the date of enactment of this Act) but were not included in a consolidated return of such group by operation of section 1504(c)(2)(A) of such Code (as in effect on the day before the date of the enactment of this Act).

(e)

Waiver of 5-Year waiting period

An automatic waiver from the 5-year waiting period for reconsolidation provided in section 1504(a)(3) of the Internal Revenue Code of 1986 shall be granted to any corporation which was previously an includible corporation but was subsequently deemed a nonincludible corporation as a result of becoming a subsidiary of a corporation which was not an includible corporation solely by operation of section 1504(c)(2) of such Code (as in effect on the day before the date of enactment of this Act), subject to such conditions as the Secretary may prescribe.