Referred to the House Committee on Ways and Means.
Taxation
Why This Matters
This bill changes tax rules for certain insurance companies. It excludes debt they hold from capital assets and extends their capital loss carryover period from 5 to 10 years.
Who this affects
Insurance companies
What changes is this bill making?
1The bill amends the Internal Revenue Code of 1986 (IRC) to exclude debt instruments held by certain insurance companies from being treated as capital assets.
2It defines “applicable insurance companies” to include most domestic insurers, certain foreign insurance corporations, and face-amount certificate companies under the Investment Company Act of 1940.
3The debt exclusion applies to notes, bonds, and other evidence of indebtedness acquired after December 31, 2025.
4The bill extends the period for carrying forward net capital losses for these companies from 5 taxable years to 10 taxable years.
5The carryover extension applies to net capital losses arising in taxable years beginning after December 31, 2025.
