Group Term Life Insurance Increase Act

Bill: 115-hr-3037
Sponsor: full_name: Rep. Burgess, Michael C. [R-TX-26]
Introduced: 2017-06-23
Policy area: Taxation
Subjects: Employee benefits and pensions

Income tax exclusion

Life, casualty, property insurance
Latest action: action_date: 2017-06-23
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-06-23
action_desc: Introduced in House
text: <p><strong>Group Term Life Insurance Increase Act </strong></p> <p>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 2017. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 3037 IN THE HOUSE OF REPRESENTATIVES June 23, 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.

1. Short title This Act may be cited as the Group Term Life Insurance Increase Act . 2. Increase in limitation on exclusion for employer-provided group term life insurance purchased for employees (a) In general Paragraph (1) of section 79(a) 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 2017, 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 2016 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, 2016.