I 
115TH CONGRESS 
1ST SESSION H. R. 2181 
To amend the Internal Revenue Code of 1986 to permit the consolidation 
of life insurance companies with other companies. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 26, 2017 
Mr. TIBERI (for himself, Mr. LARSON of Connecticut, Mr. PAULSEN, and Mr. 
REED) 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 permit 
the consolidation of life insurance companies with other 
companies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Insurance Company 
Tax Modernization and Parity Act of 2017’’. 
SEC. 2. CONSOLIDATION OF LIFE INSURANCE COMPANIES 
WITH OTHER COMPANIES PERMITTED. 
(a) IN GENERAL.—Section 1504(b) of the Internal 
Revenue Code of 1986 is amended by striking paragraph 
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(2) and by redesignating paragraphs (3) through (8) as 
paragraphs (2) through (7), respectively. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1503 of the Internal Revenue Code 
of 1986 is amended by striking subsection (c) and 
by redesignating subsections (d), (e), and (f) as sub-
sections (c), (d), and (e), respectively. 
(2) Section 1504 of such Code is amended by 
striking subsection (c) and by redesignating sub-
sections (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 IN-
SURANCE
COMPANIES.—If an affiliated group in-
cludes 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 
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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 amend-
ed 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 in-
serting ‘‘1504(b)(2)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 3. PHASE-IN OF APPLICATION OF CERTAIN LOSSES 
AGAINST INCOME OF INSURANCE COMPA-
NIES. 
(a) PHASE-IN.— 
(1) IN GENERAL.—For taxable years beginning 
after December 31, 2017, and before January 1, 
2024, if— 
(A) an affiliated group includes one 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 oper-
ating loss for such taxable year, 
then, under regulations prescribed by the Secretary 
of the Treasury or his delegate, the amount of such 
loss (including carryovers from years prior to the ef-
fective date of this provision) which cannot be ab-
sorbed in the applicable carryback periods against 
the taxable income of such members not taxed under 
such section 801 shall be taken into account in de-
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termining the consolidated taxable income of the af-
filiated group for such taxable year to the extent of 
the applicable percentage of such loss or the applica-
ble 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 deter-
mined based on the applicable percentage with re-
spect 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 applica-
ble carryover years. 
(2) APPLICABLE PERCENTAGE.—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: 
2018 ...................................................................................................
2019 ...................................................................................................
2020 ...................................................................................................
2021 ...................................................................................................
2022 ...................................................................................................
2023 ...................................................................................................
90. 
(b) NO CARRYBACK BEFORE JANUARY 1, 2018.—To 
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, 2018. 
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