,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #baha  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #bf1 #bjag,mr4 
,tib]i 7= himself1 ,mr4 ,l>son (        
,connecticut1 ,mr4 ,pauls51 & ,mr4 ,re$7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,ways & ,means  ,a   
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to p]mit ! consolidation (
 life insurance companies ) o!r         
companies4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,insurance ,company ,tax
 ,mod]nization & ,p>ity ,act ( #bjag4   
#b4 ,consolidation ( life insurance     
companies ) o!r companies p]mitt$  7a7  
,9 g5]al ,section #aejd7;b7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by /rik+
 p>agraph 7#b7 & by r$esignat+ p>agraphs
 7#c7 ?r\gh 7#h7 z p>agraphs 7#b7 ?r\gh 
7#g71 respectively4  7b7 ,con=m+        
am5dm5ts  7#a7 ,section #aejc ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ subsection 7c7 & by r$esignat+ 
subsections 7d71 7e71 & 7f7 z           
subsections 7c71 7d71 & 7e71            

respectively4  7#b7 ,section #aejd ( su*
 ,code is am5d$ by /rik+ subsection 7c7 
& by r$esignat+ subsections 7d71 7e71 & 
7f7 z subsections 7c71 7d71 & 7e71      
respectively4  7#c7 ,section            
#bdc7;b77#b77;,a7 ( su* ,code is am5d$  
by /rik+ sections #aejd7;b77#b71        
#aejd7;b77#d71 & #aejd7;c7 & ins]t+     
section #aejd7;b77#c74  7#d7 ,section   
#hje7;a77#d77;,e7 ( su* ,code is am5d$  
by /rik+ #aejd7;b77#c7 & ins]t+         
#aejd7;b77#b74  7#e7 ,section           
#hah7;e77#a7 ( su* ,code is am5d$ to    
read z foll[s3  7#a7 ,items ( companies 
o!r ?an insurance companies ,if an      
affiliat$ gr\p includes memb]s :i* are &
 :i* are n tax$ "u section #hja1 all    
items ( ! memb]s ( su* gr\p :i* are n   
tax$ "u section #hja %all n be tak5 into
 acc\nt 9 det]m9+ ! am\nt ( ! t5tative  
,,licti ( memb]s ( su* gr\p :i* are tax$
 "u section #hja4  4  7#f7 ,section     
#hcb7;b77#e77;,d77ii77,,ii7 ( su* ,code 
is am5d$ by /rik+ #aejd7;b77#c7 & ins]t+
 #aejd7;b77#b74  7#g7 ,section          

#hfd7;e77#e77;,a7 ( su* ,code is am5d$  
by /rik+ p>agraph 7#d7 & ins]t+ p>agraph
 7#c74  7#h7 ,section #icf7;i77#e77;,a7 
( su* ,code is am5d$ by /rik+ section   
#aejd7;b77#c7 or 7#d7 & ins]t+ section  
#aejd7;b77#b7 or 7#c74  7#i7 ,section   
#ieb7;c77#a77;,b77vii77,,ii7 ( su* ,code
 is am5d$ by /rik+ #aejd7;b77#c7 &      
ins]t+ #aejd7;b77#b74  7#aj7 ,section   
#iec7;d77#c7 ( su* ,code is am5d$ by    
/rik+ #aejc7;d7 & ins]t+ #aejc7;c74     
7#aa7 ,section #ied7;h77#d77;,f77ii7 (  
su* ,code is am5d$ by /rik+             
#aejd7;b77#c7 & ins]t+ #aejd7;b77#b74   
7#ab7 ,section                          
#faff7;b77#aj77;,b77ii77,v7 ( su* ,code 
is am5d$ by /rik+ #aejd7;b77#c7 & ins]t+
 #aejd7;b77#b74  7c7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjag4  #c4 ,phase-9 ( application 
( c]ta9 losses aga9/ income ( insurance 
companies  7a7 ,phase-,9  7#a7 ,9 g5]al 
,= taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjag1 & be=e ,janu>y #a1 #bjbd1   

if-- 7,a7 an affiliat$ gr\p includes "o 
or m dome/ic insurance companies subject
 to tax "u section #hja ( ! ,int]nal    
,rev5ue ,code ( #aihf2 &  7,b7 !        
consolidat$ taxable income ( ! memb]s ( 
! gr\p n tax$ "u su* section #hja       
results 9 a consolidat$ net op]at+ loss 
= su* taxable ye>1  !n1 "u regulations  
prescrib$ by ! ,secret>y ( ! ,treasury  
or 8 delegate1 ! am\nt ( su* loss       
7includ+ c>ryov]s f ye>s prior to !     
effective date ( ?is provision7 :i* _c  
be absorb$ 9 ! applicable c>ryback      
p]iods aga9/ ! taxable income ( su*     
memb]s n tax$ "u su* section #hja %all  
be tak5 into acc\nt 9 det]m9+ !         
consolidat$ taxable income ( ! affiliat$
 gr\p = su* taxable ye> to ! ext5t ( !  
applicable p]c5tage ( su* loss or !     
applicable p]c5tage ( ! taxable income (
 ! memb]s tax$ "u su* section #hja1     
:i*ev] is less4 ,! unus$ portion ( su*  
loss %all be available z a c>ryov]1     
subject to ! same limitations 7b det]m9$
 bas$ on ! applicable p]c5tage ) respect

 to ! ye> to :i* c>ri$ & applicable to !
 sum ( ! loss = ! c>ryov] ye> & ! loss  
7or losses7 c>ri$ ov] to su* ye>71 9    
applicable c>ryov] ye>s4  7#b7          
,applicable p]c5tage ,= purposes (      
p>agraph 7#a71 ! applicable p]c5tage    
%all be det]m9$ 9 accordance ) ! foll[+ 
table3  ,= taxable years,the applicable 
beg9n+ 93p]c5tage is3  #bjahdj #bjaiej  
#bjbjfj #bjbagj #bjbbhj #bjbcij4  7b7   
,no c>ryback be=e ,janu>y #a1 #bjah ,to 
! ext5t t a consolidat$ net op]at+ loss 
is all[$ or increas$ by reason ( ?is    
section or ! am5dm5ts made by ?is ,act1 
su* loss 7or increase 9 su* loss1 z !   
case may be7 may n be c>ri$ back to a   
taxable ye> beg9n+ be=e ,janu>y #a1     
#bjah4  7c7 ,nont]m9ation ( gr\p ,no    
affiliat$ gr\p %all t]m9ate solely z a  
result ( ?is section or ! am5dm5ts made 
by ?is ,act4  7d7 ,subsidi>y /ock basis 
adju/m5ts ,a memb] corporation's basis 9
 ! /ock ( a subsidi>y corporation %all  
be adju/$ ^u consolidation to reflect ! 
preconsolidation income1 ga91 d$uction1 

loss1 di/ributions1 & o!r relevant      
am\nts dur+ a p]iod :5 su* corporations 
7 memb]s ( an affiliat$ gr\p 7det]m9$   
)\t reg>d to section #aejd7;b77#b7 ( !  
,int]nal ,rev5ue ,code ( #aihf z 9      
effect on ! day be=e ! date ( enactm5t (
 ?is ,act7 b 7 n includ$ 9 a consolidat$
 return ( su* gr\p by op]ation ( section
 #aejd7;c77#b77;,a7 ( su* ,code 7z 9    
effect on ! day be=e ! date ( ! enactm5t
 ( ?is ,act74  7e7 ,waiv] ( #e-,ye>     
wait+ p]iod ,an automatic waiv] f !     
#e-ye> wait+ p]iod = reconsolidation    
provid$ 9 section #aejd7;a77#c7 ( !     
,int]nal ,rev5ue ,code ( #aihf %all be  
grant$ to any corporation :i* 0         
previ\sly an includible corporation b 0 
subsequ5tly deem$ a non9cludible        
corporation z a result ( becom+ a       
subsidi>y ( a corporation :i* 0 n an    
includible corporation solely by        
op]ation ( section #aejd7;c77#b7 ( su*  
,code 7z 9 effect on ! day be=e ! date (
 enactm5t ( ?is ,act71 subject to su*   
conditions z ! ,secret>y may prescribe4