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

Bill: 113-hr-4647
Sponsor: full_name: Rep. Paulsen, Erik [R-MN-3]
Introduced: 2014-05-09
Policy area: Taxation
Subjects: Insurance industry and regulation

Life, casualty, property insurance

Small business

Tax administration and collection, taxpayers
Latest action: action_date: 2014-05-09
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2014-05-09
action_desc: Introduced in House
text: <p>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 $2.025 million (from $1.2 million), with an annual inflation adjustment after 2014.</p>

tv_txt: I 113th CONGRESS 2d Session H. R. 4647 IN THE HOUSE OF REPRESENTATIVES May 9, 2014 Mr. Paulsen (for himself, Mr. Schock , and Mr. Kind ) 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 alternative tax liability limitation for small property and casualty insurance companies.

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 $2,025,000, 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 2014, 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 2013 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, 2013.