Page:United States Statutes at Large Volume 118.djvu/640

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118 STAT. 610 PUBLIC LAW 108–218—APR. 10, 2004 (B) by striking ‘‘Tax Relief Extension Act of 1999’’ and inserting ‘‘Pension Funding Equity Act of 2004’’. SEC. 205. REPEAL OF REDUCTION OF DEDUCTIONS FOR MUTUAL LIFE INSURANCE COMPANIES. (a) IN GENERAL.—Section 809 of the Internal Revenue Code of 1986 (relating to reductions in certain deduction of mutual life insurance companies) is hereby repealed. (b) CONFORMING AMENDMENTS.— (1) Subsections (a)(2)(B) and (b)(1)(B) of section 807 of such Code are each amended by striking ‘‘the sum of (i)’’ and by striking ‘‘plus (ii) any excess described in section 809(a)(2) for the taxable year,’’. (2)(A) The last sentence of section 807(d)(1) of such Code is amended by striking ‘‘section 809(b)(4)(B)’’ and inserting ‘‘paragraph (6)’’. (B) Subsection (d) of section 807 of such Code is amended by adding at the end the following new paragraph: ‘‘(6) STATUTORY RESERVES.—The term ‘statutory reserves’ means the aggregate amount set forth in the annual statement with respect to items described in section 807(c). Such term shall not include any reserve attributable to a deferred and uncollected premium if the establishment of such reserve is not permitted under section 811(c).’’. (3) Subsection (c) of section 808 of such Code is amended to read as follows: ‘‘(c) AMOUNT OF DEDUCTION.—The deduction for policyholder dividends for any taxable year shall be an amount equal to the policyholder dividends paid or accrued during the taxable year.’’. (4) Subparagraph (A) of section 812(b)(3) of such Code is amended by striking ‘‘sections 808 and 809’’ and inserting ‘‘section 808’’. (5) Subsection (c) of section 817 of such Code is amended by striking ‘‘(other than section 809)’’. (6) Subsection (c) of section 842 of such Code is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3). (7) The table of sections for subpart C of part I of sub chapter L of chapter 1 of such Code is amended by striking the item relating to section 809. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2004. SEC. 206. CLARIFICATION OF EXEMPTION FROM TAX FOR SMALL PROP ERTY AND CASUALTY INSURANCE COMPANIES. (a) IN GENERAL.—Section 501(c)(15)(A) of the Internal Revenue Code of 1986 is amended to read as follows: ‘‘(A) Insurance companies (as defined in section 816(a)) other than life (including interinsurers and reciprocal under writers) if— ‘‘(i)(I) the gross receipts for the taxable year do not exceed $600,000, and ‘‘(II) more than 50 percent of such gross receipts consist of premiums, or ‘‘(ii) in the case of a mutual insurance company— ‘‘(I) the gross receipts of which for the taxable year do not exceed $150,000, and 26 USC 501. Applicability. 26 USC 807 note. 26 USC 842. 26 USC 817. 26 USC 812. 26 USC 808. 26 USC 807. 26 USC 809.