S. 736 (es) To convey certain real property within the Carlsbad Project in New Mexico to the Carlsbad Irrigation District. ...

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108th CONGRESS
  1st Session
                                 S. 735

  To amend the Internal Revenue Code of 1986 to clarify the exemption 
     from tax for small property and casualty insurance companies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2003

 Mr. Bond (for himself and Mr. Johnson) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify the exemption 
     from tax for small property and casualty insurance companies.

    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 ``Small Insurance Company Inflation 
Adjustment Act''.

SEC. 2. CLARIFICATION OF EXEMPTION FROM TAX FOR SMALL PROPERTY AND 
              CASUALTY INSURANCE COMPANIES.

    (a) Premium Limitations Increased To Reflect Inflation Since First 
Imposed.--
            (1) Increased limitations for exemption from tax.--
                    (A) Subparagraph (A) of section 501(c)(15) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``$350,000'' and inserting ``$575,000''.
                    (B) Paragraph (15) of section 501(c) of such Code 
                is amended by adding at the end the following new 
                subparagraph:
                    ``(D) In the case of any taxable year beginning in 
                a calendar year after 2003, the $575,000 amount set 
                forth in subparagraph (A) shall be increased by an 
                amount equal to--
                            ``(i) $575,000, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year by substituting `calendar year 
                        2002' 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.''.
            (2) Increased limitations for alternative tax liability.--
                    (A) Clause (i) of section 831(b)(2)(A) of such Code 
                is amended to read as follows:
                            ``(i) the net written premiums (or, if 
                        greater, direct written premiums) for the 
                        taxable year exceed the amount applicable under 
                        section 501(c)(15)(A) but do not exceed 
                        $1,971,000, and''.
                    (B) 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 2003, 
                the $1,971,000 amount set forth in subparagraph (A) 
                shall be increased by an amount equal to--
                            ``(i) $1,971,000, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year by substituting `calendar year 
                        2002' 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.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.
                                 <all>

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