II
109th CONGRESS
1st Session
S. 1553
IN THE SENATE OF THE UNITED STATES
July 29, 2005
Mr. Bond 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 enhance tax incentives for small property and casualty insurance companies.
Clarification of definition of gross receipts for purposes of determining tax exemption of small property and casualty insurance companies
In general
Section 501(c)(15) of the Internal Revenue Code is amended by adding at the end the following:
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).
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2003.
Increase in limitation for alternative tax liability for small property and casualty insurance companies
In general
Clause (i) of section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended to read as follows:
the net written premiums (or, if greater, direct written premiums) for the taxable year do not exceed $1,971,000, and
.
Inflation adjustment
Paragraph (2) of section 831(b) of such Code is amended by adding at the end the following new subparagraph:
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—
$1,971,000, multiplied by
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.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2005.