U.S. Sen. Thom Tillis (R-NC) on Tuesday sponsored bipartisan legislation that could help secure life insurance policies at a lower cost for American families, and fix a long-standing tax code discrepancy for insurance companies.
“This common-sense legislation ensures debt investments made by insurance companies are treated equally under our tax code,” Sen. Tillis said. “By making these critical changes, insurance companies will be able to promote economic growth and investment in communities in North Carolina and across our country.”
If enacted, the Secure Family Futures Act of 2024, S. 4740, which is cosponsored by U.S. Sen. Bob Casey (D-PA), would make a correction to the tax code that repeals the outdated capital tax treatment of debt investments held by life insurers, such as bonds, and apply ordinary tax treatment to them, according to a bill summary provided by the lawmakers.
“This bipartisan tax bill is a common-sense way to reduce life insurance costs and protect a service that so many Pennsylvania families depend on,” said Sen. Casey.
Specifically, the legislation would amend the Internal Revenue Code of 1986 to exclude debt held by certain insurance companies from capital assets, according to the bill’s text.
S. 4740 is the companion legislation to the same-named H.R. 5707, proposed in September 2023 by U.S. Reps. Randy Feenstra (R-IA) and Terri Sewell (D-AL).
The measure has garnered support from the American Council of Life Insurers, Principal Financial Group, MetLife, and Lincoln Financial.