Tax Cuts and Jobs Act Conference Committee Report Insurance Company Tax Provisions

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The Conference Report (the Report) to accompany H.R. 1, the Tax Cuts and Jobs Act of 2017, was released on December 15, 2017. The 1,100 page report reconciles the differences in separate tax legislation proposals passed by the House Ways and Means Committee and the Senate Finance Committee, respectively, in November. The Report is the culmination of the work of the 29 House and Senate conferees appointed by leadership to craft a package of provisions that are acceptable to a majority in both chambers and the President. H.R. 1 was initially approved by the House and subsequently by the Senate with amendments to three provisions requiring its return to the House for approval of the amendments. H.R. 1 has been approved by both the House and Senate and is currently awaiting the President’s signature for enactment into law.

The Report lowers business and individual tax rates; create a territorial international tax system; and provides industry specific tax changes. The legislation is generally effective for tax years beginning after December 31, 2017, with certain provisions with effective dates in 2017.

This tax alert summarizes some of the key corporate tax provisions contained in the Report, but more specifically focuses on provisions of particular note for insurance companies. This is a high level summary of the proposals that will require detailed analysis to determine specific impacts for individual companies.

Detailed Provisions

Certain Insurance Specific Provisions

Other Insurance Provisions

  1. Small Life Insurance Company Deduction
  2. Tentative Surtax on Life Insurance Companies
  3. Adjustment for change in computing reserves of Life Insurance Companies
  4. Policyholder Surplus Account Repeal for Life Insurance Companies
  5. Repeal of special estimated tax payments