In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Small Property and
Casualty Insurance Company Equity Act of 1997''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.

SEC. 2. SMALL COMPANY DEDUCTION.

(a) Section 832(c) is amended by striking ''and'' at the end of
paragraph (12), by striking the period at the end of paragraph (13) and
inserting ''; and'', and by adding at the end thereof the following new
paragraph:
''(14) the small insurance company deduction allowed by
subsection (h).''
(b) Section 832 is amended by adding at the end thereof the
following new subsections:
''(h) Small Insurance Company Deduction.--In the case of taxable
years beginning after December 31, 1997--
''(1) In general.--There shall be allowed as a deduction
for the taxable year 60 percent of so much of the tentative
taxable income for such taxable year as does not exceed
$3,000,000 (hereinafter in this section referred to as the
'small insurance company deduction').
''(2) Phaseout between $3,000,000 and $15,000,000.--The
amount of the small insurance company deduction determined
under paragraph (1) for any taxable year shall be reduced (but
not below zero) by 15 percent of so much of the tentative
taxable income for such taxable year as exceeds $3,000,000.
''(3) Small insurance company deduction not allowable to
company with assets of $500,000,000 or more.--
''(A) In general.--The small insurance company
deduction shall not be allowed for any taxable year to
any insurance company which, at the close of such
taxable year, has assets equal to or greater than
$500,000,000.
''(B) Assets.--For purposes of this paragraph, the
term 'assets' means all assets of the company.
''(C) Valuation of assets.--For purposes of this
paragraph, the amount attributable to--
''(i) real property and stock shall be the
fair market value thereof, and
''(ii) any other asset shall be the
adjusted basis of such asset for purposes of
determining gain on sale or other disposition.
''(D) Special rule for interests in partnerships
and trusts.--For purposes of this paragraph--
''(i) an interest in a partnership or trust
shall not be treated as an asset of the
company, but
''(ii) the company shall be treated as
actually owning its proportionate share of the
assets held by the partnership or trust (as the
case may be).
''(i) Tentative Taxable Income.--For purposes of subsection (h)--
''(1) In general.--The term 'tentative taxable income'
means taxable income determined without regard to the small
insurance company deduction.
''(2) Exclusion of items attributable to noninsurance
businesses.--The amount of the tentative taxable income for any
taxable year shall be determined without regard to all items
attributable to noninsurance businesses.
''(3) Noninsurance businesses.--
''(A) In general.--The term ''non-insurance
business'' means any activity which is not an insurance
business.
''(B) Certain activities treated as insurance
businesses.--For purposes of subparagraph (A), any
activity which is not an insurance business shall be
treated as an insurance business if--
''(i) it is of a type traditionally carried
on by insurance companies for investment
purposes, but only if the carrying on of such
activity (other than in the case of real
estate) does not constitute the active conduct
of a trade or business, or
''(ii) it involves the performance of
administrative services in connection with
plans providing property or casualty insurance
benefits.
''(C) Limitation of amount of loss from
noninsurance business which may offset income from
insurance business.--In computing the taxable income of
any insurance company subject to tax imposed by section
831, any loss from a noninsurance business shall be
limited under the principles of section 1503(c).
''(j) Special Rule for Controlled Groups.--
''(1) Small insurance company deduction determined on
controlled group basis.--For purposes of subsections (h) and
(i)--
''(A) all insurance companies which are members of
the same controlled group shall be treated as 1
insurance company, and
''(B) any small insurance company deduction
determined with respect to such group shall be
allocated among the insurance companies which are
members of such group in proportion to their respective
tentative taxable incomes.
''(2) Noninsurance members included for asset test.--For
purposes of subsection (h)(3), all members of the same
controlled group (whether or not insurance companies) shall be
treated as 1 company.
''(3) Controlled group.--For purposes of this subsection,
the term 'controlled group' means any controlled group of
corporations (as defined in section 1563(a)); except that
subsections (a)(4) and (b)(2)(D) of section 1563 shall not
apply.
''(4) Adjustments to prevent excess detriment or benefit.--
Under regulations prescribed by the Secretary, proper
adjustments shall be made in the application of this subsection
to prevent any excess detriment or benefit (whether from year-
to-year or otherwise) arising from the application of this
subsection.''

SEC. 3. EFFECTIVE DATE.

The amendments made by this Act shall apply to taxable years
beginning after December 31, 1997.
A:
Small Property and Casualty Insurance Company Equity Act of 1997 - Amends the Internal Revenue Code to provide for a small insurance company (assets of less than $500 million) deduction (60 percent of tentative taxable income of $3 millon or less) from the insurance company tax.