Bill > HR3014

This bill, the Catastrophic Risk Transfer Act of 2023 or the CART Act of 2023, aims to amend the Internal Revenue Code to establish a system for the taxation of catastrophic risk transfer companies. The key provisions include: 1. Defining a "catastrophic risk transfer company" as a domestic corporation that is created, organized, and regulated under state law to carry out catastrophic risk transfer activities, with limitations on the types of business it can engage in. 2. Imposing a tax on the "catastrophic risk transfer company taxable income" of these companies, with certain deductions and adjustments to the calculation of taxable income. 3. Providing rules for the taxation of dividends paid by these companies to security holders, including requirements for the companies to identify the character of the dividends. 4. Exempting certain qualified investment income dividends paid by these companies from withholding taxes on nonresident aliens and foreign corporations. 5. Preventing double taxation by prohibiting other states from imposing premium taxes on reinsurance premiums paid to or received by these companies, and coordinating state premium tax rates with the federal tax on foreign reinsurers.