Bill > S1335

This bill modifies the Internal Revenue Code to provide two key tax benefits for certain insurance companies. First, the bill excludes debt instruments (such as notes, bonds, and debentures) held by applicable insurance companies from being classified as capital assets, which could change how these financial instruments are taxed. The bill defines "applicable insurance companies" as most insurance companies, with some specific exceptions like small insurance companies, foreign corporations, and certain specialized insurance organizations. Second, the bill extends the period for capital loss carryovers from 5 to 10 years for applicable insurance companies, allowing these companies to use capital losses to offset future capital gains over a longer timeframe. Both provisions would take effect for tax years beginning after December 31, 2025, giving insurance companies advanced notice of these tax code changes. The bill, titled the "Secure Family Futures Act of 2025," aims to provide more flexible tax treatment for insurance companies by modifying how they can handle debt instruments and carry forward capital losses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1335/all-info