1. Increase in limitation for alternative tax liability for small property and casualty insurance companies
In General— Clause (i) of section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended to read as follows:
“(i) the net written premiums (or, if greater, direct written premiums) for the taxable year do not exceed $2,025,000, and”
Inflation Adjustment— Paragraph (2) of section 831(b) of such Code is amended by adding at the end the following new subparagraph:
“(C) Inflation adjustment—In the case of any taxable year beginning in a calendar year after 2014, the dollar amount set forth in subparagraph (A) shall be increased by an amount equal to—
“(i) such dollar amount, multiplied by
“(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 2013” for “calendar year 1992” in subparagraph (B) thereof.”
Effective Date— The amendments made by this section shall apply to taxable years beginning after December 31, 2013.