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Friday, August 9, 2013

Senate Introduces Bill to Increase the Threshold for Small P&C Insurer Tax Provision

Under current law, property and casualty insurers with annual premiums between $350,000 and $1.2 million have the choice to be taxed on their net investment income or their annual operating income. These premium amounts have not been adjusted since 1986.

Bipartisan legislation, S. 1346, introduced in the Senate by Tom Harkin (D-IA) and co-sponsored by Senators Roy Blunt (R-MO), Chuck Grassley (R-IA), Amy Klobuchar (D-MN) and John Rockefeller (D-WV), would adjust the eligible premium index for inflation. If passed, the maximum limit would be $2.012 million and would be indexed to inflation going forward.

Learn more about S. 1346, The Small Mutual Inflation Update bill.