2198 112th CONGRESS
H. R. 2198
To amend the Internal Revenue Code of 1986 to
increase the alternative tax liability limitation for small property and casualty
insurance companies.IN THE HOUSE OF REPRESENTATIVES
Mr. PAULSEN (for himself, Mr. SCHOCK, and Mr. DONNELLY
of Indiana) introduced the following bill; which was referred to the Committee
on Ways and Means
To amend the
Internal Revenue Code of 1986 to increase the alternative tax liability limitation
for small property and casualty insurance companies.
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled,
SECTION 1. 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 $2,025,000, 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 2012, the dollar
amount set forth in subparagraph (A) 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 2011' 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 the date of the enactment of this Act.