Title: Group Term Life Insurance Increase Act of 2017
Policy area: Taxation

Summary:
Group Term Life Insurance Increase Act of 2017
This bill amends the Internal Revenue Code to increase the limit on the amount of employer-provided group term life insurance that an employee may exclude from his or her gross income for income tax purposes. Currently, an employee may exclude from gross income up to $50,000 of the cost of such insurance plus any amount paid by the employee for the purchase of such insurance. The bill increases the $50,000 limit to $375,000, and adjusts such increased limit for inflation in taxable years beginning after 2018.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1012 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1012

   To amend the Internal Revenue Code of 1986 to increase the dollar 
 limitation on employer-provided group term life insurance that can be 
            excluded from the gross income of the employee.


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                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2017

 Mr. Burgess 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 increase the dollar 
 limitation on employer-provided group term life insurance that can be 
            excluded from the gross income of the employee.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Group Term Life Insurance Increase 
Act of 2017''.

SEC. 2. INCREASE IN LIMITATION ON EXCLUSION FOR EMPLOYER-PROVIDED GROUP 
              TERM LIFE INSURANCE PURCHASED FOR EMPLOYEES.

    (a) In General.--Section 79(a)(1) of the Internal Revenue Code of 
1986 is amended by striking ``$50,000'' and inserting ``$375,000''.
    (b) Inflation Adjustment.--Section 79 of such Code is amended by 
adding at the end the following new subsection:
    ``(g) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2018, the $375,000 amount under subsection 
        (a)(1) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `2017' for `1992' in subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $10,000, such amount shall be rounded 
        to the nearest multiple of $10,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.
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