SEC. 831. TAX ON INSURANCE
COMPANIES OTHER THAN LIFE INSURANCE COMPANIES.
831(a) GENERAL RULE. --Taxes computed as provided
in section 11 shall be imposed for each taxable year on the
taxable income of every insurance company other than a life
insurance company.
831(b) ALTERNATIVE TAX FOR CERTAIN SMALL
COMPANIES. --
831(b)(1) IN GENERAL. --In
lieu of the tax otherwise applicable under subsection (a), there
is hereby imposed for each taxable year on the income of every
insurance company to which this subsection applies a tax computed
by multiplying the taxable investment income of such company
for such taxable year by the rates provided in section 11(b).
831(b)(2) COMPANIES TO WHICH THIS SUBSECTION
APPLIES. --
831(b)(2)(A) IN GENERAL. --This
subsection shall apply to every insurance company other than
life (including interinsurers and reciprocal underwriters) if
--
831(b)(2)(A)(i) the net written
premiums (or, if greater, direct written premiums) for the taxable
year do not exceed $1,200,000, and
831(b)(2)(A)(ii) such company
elects the application of this subsection for such taxable year.
The election under clause (ii) shall apply to
the taxable year for which made and for all subsequent taxable
years for which the requirements of clause (i) are met. Such
an election, once made, may be revoked only with the consent
of the Secretary.
831(b)(2)(B) CONTROLLED GROUP RULES.
--
831(b)(2)(B)(i) IN GENERAL.
--For purposes of subparagraph (A), in determining whether any
company is described in clause (i) of subparagraph (A), such
company shall be treated as receiving during the taxable year
amounts described in such clause (i) which are received during
such year by all other companies which are members of the same
controlled group as the insurance company for which the determination
is being made.
831(b)(2)(B)(ii) CONTROLLED GROUP.
--For purposes of clause (i), the term "controlled group"
means any controlled group of corporations (as defined in section
1563(a)); except that --
831(b)(2)(B)(ii)(I) "more
than 50 percent" shall be substituted for "at least
80 percent" each place it appears in section 1563(a), and
831(b)(2)(B)(ii)(II) subsections
(a)(4) and (b)(2)(D) of section 1563 shall not apply.
831(b)(3) LIMITATION ON USE OF NET OPERATING
LOSSES. --For purposes of this part, except as provided
in section 844, a net operating loss (as defined in section
172) shall not be carried --
831(b)(3)(A) to or from any
taxable year for which the insurance company is not subject
to the tax imposed by subsection (a), or
831(b)(3)(B) to any taxable
year if, between the taxable year from which such loss is being
carried and such taxable year, there is an intervening taxable
year for which the insurance company was not subject to the
tax imposed by subsection (a).
831(c) INSURANCE COMPANY DEFINED.
--For purposes of this section, the term "insurance company"
has the meaning given to such term by section 816(a)).
831(d) CROSS REFERENCES. --
831(d)(1) For alternative tax
in case of capital gains, see section 1201(a).
831(d)(2) For taxation of foreign
corporations carrying on an insurance business within the United
States, see section 842.
831(d)(3) For exemption from
tax for certain insurance companies other than life, see section
501(c)(15).
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