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 $2.012 million (from $1.2 million), with an annual inflation adjustment after 2013.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1346 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1346

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

                             July 23, 2013

Mr. Harkin (for himself, Mr. Grassley, Ms. Klobuchar, Mr. Rockefeller, 
and Mr. Blunt) 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 by striking ``$1,200,000'' and 
inserting ``$2,012,000''.
    (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 2013, 
                the dollar amount set forth in subparagraph (A)(i) 
                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 
                        2012' 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.
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