ACLI Supports Legislation On Consolidated Tax Returns
ACLI is strongly supporting new bipartisan legislation that addresses the removal of the current restraints on filing consolidated tax returns.
Under current law, life insurers filing consolidated returns cannot offset their income with the net operating losses of nonlife affiliates for the first five years after the affiliation occurs.
After the five-year waiting period, the amount of the offset is capped at 35% of the affiliates net operating losses.
Under legislation introduced by Reps. Phil Crane, R-Ill., and Robert Matsui, D-Calif., (bill number not available at press time) the five-year rule would be eliminated immediately.
In addition, beginning in 2004, the amount of the offset would gradually increase, reaching 100% in 2010.
Specifically, the offset would increase to 40% in 2004, and then increase by 10 percentage points each subsequent year reaching 100% in 2010.
The legislation has 19 bipartisan co-sponsors, all of whom are members of the House Ways and Means Committee.
Jack Dolan, an ACLI spokesman, praises the legislation, adding a much narrower version had been passed by the Senate as part of the economic growth package but then dropped during the House-Senate conference.
Reproduced from National Underwriter Life & Health/Financial Services Edition, June 2, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.