NU Online News Service, March 8, 2:24 p.m. — Washington
Insurance companies won a major legislative victory today when the Senate joined the House in passing an economic stimulus package that retroactively extends the 2001 treatment of investment income earned by foreign subsidiaries of U.S. financial services firms.
The legislation, which President Bush has said he will sign, extends the 2001 treatment of the affected income under Subpart F of the tax code for five years retroactive to Jan. 1, 2002.
The five-year extension was an added victory for the industry. In his fiscal year 2003 budget, the president proposed only a two-year extension.
The American Council of Life Insurers, Washington, has lobbied hard for the extension.