110 HR 1810 IH: To amend the Internal Revenue Code of 1986 to permit the
U.S. House of Representatives
2007-03-29
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Consolidation of life
insurance companies with other companies permitted
(a)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)
(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 (c), (d), and (e), 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 companiesIf 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)The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.
2.Phase-in of
application of certain losses against income of insurance companies
(a)
(1)For taxable years beginning after December 31, 2006, and
before January 1, 2013, 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)For purposes of paragraph (1), the applicable
percentage shall be determined in accordance with the following table:
For taxable years The applicable
beginning in:percentage is:
200740
200850
200960
201070
201180
201290.
(b)No carryback
before January 1, 2007To 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,
2007.
(c)No affiliated group shall terminate solely as a result
of this section or the amendments made by this Act.
(d)Subsidiary stock
basis adjustmentsA 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 periodAn 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.