II
119THCONGRESS
1
STSESSION S. 1335
To amend the Internal Revenue Code of 1986 to exclude debt held by
certain insurance companies from capital assets and to extend capital
loss carryovers for such companies from 5 years to 10 years.
IN THE SENATE OF THE UNITED STATES
APRIL8, 2025
Mr. T
ILLIS(for himself and Mr. WARNOCK) 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 exclude
debt held by certain insurance companies from capital
assets and to extend capital loss carryovers for such
companies from 5 years to 10 years.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Secure Family Futures 4
Act of 2025’’. 5
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•S 1335 IS
SEC. 2. DEBT NOT TREATED AS CAPITAL ASSET FOR APPLI-1
CABLE INSURANCE COMPANIES. 2
(a) E
XCLUSIONFROMCAPITALASSETS.—Section 3
1221(a) of the Internal Revenue Code of 1986 is amended 4
by striking ‘‘or’’ at the end of paragraph (7), by striking 5
the period at the end of paragraph (8) and inserting ‘‘; 6
or’’, and by adding at the end the following new para-7
graph: 8
‘‘(9) any note, bond, debenture, or other evi-9
dence of indebtedness held by an applicable insur-10
ance company.’’. 11
(b) A
PPLICABLEINSURANCECOMPANYDEFINED.— 12
Section 1221(b) of such Code is amended by redesignating 13
paragraph (4) as paragraph (5) and by inserting after 14
paragraph (3) the following new paragraph: 15
‘‘(4) A
PPLICABLE INSURANCE COMPANY .—For 16
purposes of subsection (a)(9), the term ‘applicable 17
insurance company’ means, with respect to any tax-18
able year— 19
‘‘(A) any insurance company other than an 20
insurance company— 21
‘‘(i) with respect to which an election 22
is in effect under section 831(b)(2)(A)(iii) 23
or 835(a) for such taxable year, 24
‘‘(ii) which is a foreign corporation 25
described in section 842, or 26
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•S 1335 IS
‘‘(iii) which is an organization to 1
which section 833 applies for such taxable 2
year, or 3
‘‘(B) a face-amount certificate company 4
registered under the Investment Company Act 5
of 1940.’’. 6
(c) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to notes, bonds, debentures, or 8
other evidence of indebtedness acquired by an applicable 9
insurance company (as defined in section 1221(b)(4)) of 10
such Code after December 31, 2025. 11
SEC. 3. CAPITAL LOSS CARRYOVERS INCURRED BY APPLI-12
CABLE INSURANCE COMPANIES ALLOWED 13
FOR 10 YEARS. 14
(a) I
NGENERAL.—Section 1212(a)(1)(C) of the In-15
ternal Revenue Code of 1986 is amended to read as fol-16
lows: 17
‘‘(C) a capital loss carryover to each of the 18
10 taxable years succeeding the loss year, but 19
only to the extent such loss— 20
‘‘(i) is attributable to a foreign expro-21
priation loss, or 22
‘‘(ii) was incurred by an applicable in-23
surance company (as defined in section 24
1221(b)(4)).’’. 25
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•S 1335 IS
(b) EFFECTIVEDATE.—The amendment made by 1
this section shall apply to net capital losses arising in tax-2
able years beginning after December 31, 2025. 3
Æ
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