A bill to amend the Internal Revenue Code of 1986 to increase the alternative tax liability limitation for small property and casualty insurance companies.

Amends the Internal Revenue Code to expand the eligibility of certain small insurance companies (other than life insurance companies) for the alternative corporate income tax by increasing the premium limitation used to determine such eligibility to $1.971 million (from $1.2 million), with an annual inflation adjustment to that increased amount after 2007.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2040 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2040

To amend the Internal Revenue Code of 1986 to increase the alternative 
  tax liability limitation for small property and casualty insurance 
                               companies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 12, 2007

Mr. Bond (for himself 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 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 $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 2007, 
                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 
                        2006' 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, 2006.
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