| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 1335 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to exclude debt held by |
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| 6 | 6 | | certain insurance companies from capital assets and to extend capital |
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| 7 | 7 | | loss carryovers for such companies from 5 years to 10 years. |
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| 8 | 8 | | IN THE SENATE OF THE UNITED STATES |
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| 9 | 9 | | APRIL8, 2025 |
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| 10 | 10 | | Mr. T |
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| 11 | 11 | | ILLIS(for himself and Mr. WARNOCK) introduced the following bill; |
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| 12 | 12 | | which was read twice and referred to the Committee on Finance |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend the Internal Revenue Code of 1986 to exclude |
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| 15 | 15 | | debt held by certain insurance companies from capital |
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| 16 | 16 | | assets and to extend capital loss carryovers for such |
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| 17 | 17 | | companies from 5 years to 10 years. |
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| 18 | 18 | | Be it enacted by the Senate and House of Representa-1 |
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| 19 | 19 | | tives of the United States of America in Congress assembled, 2 |
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| 20 | 20 | | SECTION 1. SHORT TITLE. 3 |
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| 21 | 21 | | This Act may be cited as the ‘‘Secure Family Futures 4 |
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| 22 | 22 | | Act of 2025’’. 5 |
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| 23 | 23 | | VerDate Sep 11 2014 03:16 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1335.IS S1335 |
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| 24 | 24 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 25 | 25 | | •S 1335 IS |
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| 26 | 26 | | SEC. 2. DEBT NOT TREATED AS CAPITAL ASSET FOR APPLI-1 |
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| 27 | 27 | | CABLE INSURANCE COMPANIES. 2 |
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| 28 | 28 | | (a) E |
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| 29 | 29 | | XCLUSIONFROMCAPITALASSETS.—Section 3 |
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| 30 | 30 | | 1221(a) of the Internal Revenue Code of 1986 is amended 4 |
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| 31 | 31 | | by striking ‘‘or’’ at the end of paragraph (7), by striking 5 |
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| 32 | 32 | | the period at the end of paragraph (8) and inserting ‘‘; 6 |
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| 33 | 33 | | or’’, and by adding at the end the following new para-7 |
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| 34 | 34 | | graph: 8 |
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| 35 | 35 | | ‘‘(9) any note, bond, debenture, or other evi-9 |
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| 36 | 36 | | dence of indebtedness held by an applicable insur-10 |
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| 37 | 37 | | ance company.’’. 11 |
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| 38 | 38 | | (b) A |
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| 39 | 39 | | PPLICABLEINSURANCECOMPANYDEFINED.— 12 |
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| 40 | 40 | | Section 1221(b) of such Code is amended by redesignating 13 |
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| 41 | 41 | | paragraph (4) as paragraph (5) and by inserting after 14 |
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| 42 | 42 | | paragraph (3) the following new paragraph: 15 |
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| 43 | 43 | | ‘‘(4) A |
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| 44 | 44 | | PPLICABLE INSURANCE COMPANY .—For 16 |
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| 45 | 45 | | purposes of subsection (a)(9), the term ‘applicable 17 |
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| 46 | 46 | | insurance company’ means, with respect to any tax-18 |
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| 47 | 47 | | able year— 19 |
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| 48 | 48 | | ‘‘(A) any insurance company other than an 20 |
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| 49 | 49 | | insurance company— 21 |
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| 50 | 50 | | ‘‘(i) with respect to which an election 22 |
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| 51 | 51 | | is in effect under section 831(b)(2)(A)(iii) 23 |
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| 52 | 52 | | or 835(a) for such taxable year, 24 |
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| 53 | 53 | | ‘‘(ii) which is a foreign corporation 25 |
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| 54 | 54 | | described in section 842, or 26 |
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| 55 | 55 | | VerDate Sep 11 2014 03:16 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1335.IS S1335 |
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| 56 | 56 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 57 | 57 | | •S 1335 IS |
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| 58 | 58 | | ‘‘(iii) which is an organization to 1 |
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| 59 | 59 | | which section 833 applies for such taxable 2 |
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| 60 | 60 | | year, or 3 |
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| 61 | 61 | | ‘‘(B) a face-amount certificate company 4 |
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| 62 | 62 | | registered under the Investment Company Act 5 |
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| 63 | 63 | | of 1940.’’. 6 |
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| 64 | 64 | | (c) E |
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| 65 | 65 | | FFECTIVEDATE.—The amendments made by 7 |
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| 66 | 66 | | this section shall apply to notes, bonds, debentures, or 8 |
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| 67 | 67 | | other evidence of indebtedness acquired by an applicable 9 |
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| 68 | 68 | | insurance company (as defined in section 1221(b)(4)) of 10 |
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| 69 | 69 | | such Code after December 31, 2025. 11 |
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| 70 | 70 | | SEC. 3. CAPITAL LOSS CARRYOVERS INCURRED BY APPLI-12 |
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| 71 | 71 | | CABLE INSURANCE COMPANIES ALLOWED 13 |
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| 72 | 72 | | FOR 10 YEARS. 14 |
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| 73 | 73 | | (a) I |
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| 74 | 74 | | NGENERAL.—Section 1212(a)(1)(C) of the In-15 |
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| 75 | 75 | | ternal Revenue Code of 1986 is amended to read as fol-16 |
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| 76 | 76 | | lows: 17 |
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| 77 | 77 | | ‘‘(C) a capital loss carryover to each of the 18 |
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| 78 | 78 | | 10 taxable years succeeding the loss year, but 19 |
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| 79 | 79 | | only to the extent such loss— 20 |
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| 80 | 80 | | ‘‘(i) is attributable to a foreign expro-21 |
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| 81 | 81 | | priation loss, or 22 |
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| 82 | 82 | | ‘‘(ii) was incurred by an applicable in-23 |
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| 83 | 83 | | surance company (as defined in section 24 |
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| 84 | 84 | | 1221(b)(4)).’’. 25 |
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| 85 | 85 | | VerDate Sep 11 2014 03:16 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1335.IS S1335 |
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| 86 | 86 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
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| 87 | 87 | | •S 1335 IS |
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| 88 | 88 | | (b) EFFECTIVEDATE.—The amendment made by 1 |
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| 89 | 89 | | this section shall apply to net capital losses arising in tax-2 |
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| 90 | 90 | | able years beginning after December 31, 2025. 3 |
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| 91 | 91 | | Æ |
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| 92 | 92 | | VerDate Sep 11 2014 03:16 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1335.IS S1335 |
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| 93 | 93 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
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