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 by striking “$1,200,000” and inserting “$2,012,000”.
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 2013, the dollar amount set forth in subparagraph (A)(i) 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 2012” for “calendar year 1992” in subparagraph (B) thereof.”
Effective Date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.