Page 94 - Tax Reform

131 STAT. 2144 PUBLIC LAW 115–97—DEC. 22, 2017

26 USC 801 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2017.
26 USC 801 note. (d) PHASED INCLUSION OF REMAINING BALANCE OF POLICY-
HOLDERS SURPLUS ACCOUNTS.—In the case of any stock life insur-
ance company which has a balance (determined as of the close
of such company’s last taxable year beginning before January 1,
2018) in an existing policyholders surplus account (as defined in
section 815 of the Internal Revenue Code of 1986, as in effect
before its repeal), the tax imposed by section 801 of such Code
for the first 8 taxable years beginning after December 31, 2017,
shall be the amount which would be imposed by such section
for such year on the sum of—
(1) life insurance company taxable income for such year
(within the meaning of such section 801 but not less than
zero), plus
(2) ⁄8 of such balance.
1
SEC. 13515. MODIFICATION OF PRORATION RULES FOR PROPERTY AND
CASUALTY INSURANCE COMPANIES.
(a) IN GENERAL.—Section 832(b)(5)(B) is amended—
(1) by striking ‘‘15 percent’’ and inserting ‘‘the applicable
percentage’’, and
(2) by inserting at the end the following new sentence:
‘‘For purposes of this subparagraph, the applicable percentage
is 5.25 percent divided by the highest rate in effect under
section 11(b).’’.
26 USC 832 note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2017.
SEC. 13516. REPEAL OF SPECIAL ESTIMATED TAX PAYMENTS.
(a) IN GENERAL.—Part III of subchapter L of chapter 1 is
26 USC amended by striking section 847 (and by striking the item relating
prec. 841. to such section in the table of sections for such part).
26 USC 847 note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2017.
SEC. 13517. COMPUTATION OF LIFE INSURANCE TAX RESERVES.
(a) IN GENERAL.—
(1) APPROPRIATE RATE OF INTEREST.—The second sentence
of section 807(c) is amended to read as follows: ‘‘For purposes
of paragraph (3), the appropriate rate of interest is the highest
rate or rates permitted to be used to discount the obligations
by the National Association of Insurance Commissioners as
of the date the reserve is determined.’’.
(2) METHOD OF COMPUTING RESERVES.—Section 807(d) is
amended—
(A) by striking paragraphs (1), (2), (4), and (5),
(B) by redesignating paragraph (6) as paragraph (4),
(C) by inserting before paragraph (3) the following
new paragraphs:
‘‘(1) DETERMINATION OF RESERVE.—
‘‘(A) IN GENERAL.—For purposes of this part (other
than section 816), the amount of the life insurance reserves
for any contract (other than a contract to which subpara-
graph (B) applies) shall be the greater of—
‘‘(i) the net surrender value of such contract, or
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‘‘(ii) 92.81 percent of the reserve determined under
paragraph (2).