[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3360 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3360

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 2005

  Mr. Nussle 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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.

SEC. 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.
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