Disallowance of FDIC premiums paid by certain large financial institutions
(1) In general
(1)In general#
No deduction shall be allowed for the applicable percentage of any FDIC premium paid or incurred by the taxpayer.
(2)Exception for small institutions#
Paragraph (1) shall not apply to any taxpayer for any taxable year if the total consolidated assets of such taxpayer (determined as of the close of such taxable year) do not exceed $10,000,000,000.
(3)Applicable percentage#
For purposes of this subsection, the term “applicable percentage” means, with respect to any taxpayer for any taxable year, the ratio (expressed as a percentage but not greater than 100 percent) which—
(A) the excess of— (i) the total consolidated assets of such taxpayer (determined as of the close of such taxable year), over (ii) $10,000,000,000, bears to
(B) $40,000,000,000.
(3)(A)#
the excess of—
(i) the total consolidated assets of such taxpayer (determined as of the close of such taxable year), over
(ii) $10,000,000,000, bears to
(3)(A)(i)#
the total consolidated assets of such taxpayer (determined as of the close of such taxable year), over
(3)(A)(ii)#
$10,000,000,000, bears to
(4)FDIC premiums#
For purposes of this subsection, the term “FDIC premium” means any assessment imposed under section 7(b) of the Federal Deposit Insurance Act ( 12 U.S.C. 1817(b) ).
(5)Total consolidated assets#
For purposes of this subsection, the term “total consolidated assets” has the meaning given such term under section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5365 ).
(6)Aggregation rule#
(A) In general Members of an expanded affiliated group shall be treated as a single taxpayer for purposes of applying this subsection.
(B) Expanded affiliated group (i) In general For purposes of this paragraph, the term “expanded affiliated group” means an affiliated group as defined in section 1504(a), determined— (I) by substituting “more than 50 percent” for “at least 80 percent” each place it appears, and (II) without regard to paragraphs (2) and (3) of section 1504(b). (ii) Control of non-corporate entities A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this clause).
(6)(A)In general#
Members of an expanded affiliated group shall be treated as a single taxpayer for purposes of applying this subsection.
(6)(B)Expanded affiliated group#
(i) In general For purposes of this paragraph, the term “expanded affiliated group” means an affiliated group as defined in section 1504(a), determined— (I) by substituting “more than 50 percent” for “at least 80 percent” each place it appears, and (II) without regard to paragraphs (2) and (3) of section 1504(b).
(ii) Control of non-corporate entities A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this clause).