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TITLE 26-INTERNAL REVENUE CODE $150,000 of such gross amount received bears to $100,000. (3) Companies to which subsection applies (A) In general Except as provided in subparagraph (B), this subsection shall apply to every mutual insurance company (other than a life insur- ance company and other than a fire, flood, or marine insurance company subject to the tax imposed by section 831) which received during the taxable year from the items de- scribed in section 822(b) (other than para- graph (1)(D) thereof) and premiums (in- cluding deposits and assessments) a gross amount in excess of $150,000 but not in excess of $500,000. (B) Exceptions This subsection shall not apply to a mutual insurance company for the taxable year if- (I) there is in effect an election by such company made under subsection (d) to be taxable under subsection (a); or (ii) there is any amount in the protec- tion against loss account at the beginning of the taxable year. (d) Election to include statutory underwriting income or loss (I) In general Any mutual insurance company which is subject to the tax imposed by subsection (c) may elect, in such manner and at such time as the Secretary may by regulations pre- scribe, to be subject to the tax imposed by subsection (a). (2) Effect of election If an election is made under paragraph (1), the electing company shall be subject to the tax imposed by subsection (a) (and shall not be subject to the tax imposed by subsection (c)) for the first taxable year for which such election is made and for all taxable years thereafter unless the Secretary consents to a revocation of such election. (e) Tax applicable to member of group filing consoli- dated return Notwithstanding any other provision of this section, if a mutual insurance company to which this section applies joins in the filing of a consolidated return (or is required to so file), the applicable tax shall consist of a normal tax and a surtax computed as provided in section 11 as though the mutual insurance company tax- able income of such company were the taxable income referred to in section 11. (f) Cross references (1) For exemption from tax of certain mutual insur- ance companies, see section 501(c)(15). (2) For alternative tax in case of capital gains, see sec- tion 1201(a). (3) For taxation of foreign corporations carrying on an insurance business within the United States, see section 842. (Aug. 16, 1954, ch. 736, 68A Stat. 260; Mar. 30, 1955, ch. 18, § 2, 69 Stat. 14; Mar. 13, 1956, ch. 83, § 3(a)(1), (2), 70 Stat. 47; Mar. 29, 1956, ch. 115, § 2, 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, § 2, 71 Stat. 9; June 30, 1958, Pub. L. 85-475, § 2, 72 Stat. 259; June 30, 1959, Pub. L. 86-75, § 2, 73 Stat. 157; June 30, 1960, Pub. L. 86-564, title II, § 201, 74 Stat. 290; June 30, 1961, Pub. L. 87-72, § 2, 75 Stat. 193; June 28, 1962, Pub. L. 87-508, § 2, 76 Stat. 114; Oct. 16, 1962, Pub. L. 87-834, § 8(a), 76 Stat. 989; June 29, 1963 Pub. L. 88-52, § 2, 77 Stat. 72; Feb. 26, 1964, Pub. L. 88-272, title I, § 123(a), 78 Stat. 29; Nov. 13, 1966, Pub. L. 89-809, title I, § 104(i)(4), 80 Stat. 1562; Oct. 4, 1976, Pub. L. 94-455, title IX, § 901(b), title XV, § 1507(b)(1), title XIX, §§ 1901(a)(104), 1906(b)(13)(A), 90 Stat. 1607, 1739, 1782, 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 1901(a)(104)(A), struck out "beginning after December 31, 1963," fol- lowing "imposed for each taxable year". Subsec. (a)(1). Pub. L. 94-455, § 901(b)(1), designated existing provisions as introductory matter and subpar. (A), and in subpar. (A) as so designated, added refer- ence to in the case of taxable year ending after Dec. 31, 1977, and added subpar. (B). Subsec. (c)(1). Pub. L. 94-455, § 1901(a)(104)(B), sub- stituted "There is" for "In the case of taxable years beginning after December 31, 1963, there is". Subsec. (c)(1)(A). Pub. L. 94-455, § 901(b)(2), desig- nated existing provisions as introductory matter and cl. (i), and in cl. (i) as so designated, added reference to in the case of the taxable year ending after Dec. 31, 1977, and added cl. (1i). Subsec. (d). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary" wherever appearing. Subsec. (e). Pub. L. 94-455, §§ 1507(b)(1), 1901(a)(104)(C), substituted provisions relating to tax applicable to member of group filing consolidated return for provisions relating to special transitional underwriting loss. Subsec. (f). Pub. L. 94-455, §§ 1507(b)(1), 1901(a)(104)(C), reenacted subsec. (f) without change. 1966-Subsec. (e). Pub. L. 89-809, § 104(i)(4)(A), struck out former subsec. (e) dealing with foreign mutual insurance companies not carrying on an insur- ance business within the United States as redesignated subsec. (f) as subsec. (e). Subsec. f). Pub. L. 89-809, § 104(i)(4)(A), (B), rede- signated subsec. (g) as subsec. f) and, in subsec. (f) as so redesignated, added item (3). Former subsec. (f) re- designated as subsec. (e). Subsec. (g). Pub. L. 89-809, § 104(i)(4)(A), redesignat- ed subsec. (g) as subsec. (f). Former subsec. (f) redesig- nated as subsec. (e). 1964-Subsec. (a). Pub. L. 88-272, § 123(a)(1), substi- tuted "December 31, 1963" for "December 31, 1962", provisions setting a normal tax of 22% of the mutual insurance company taxable income, or 44% of the amount such income exceeds $6,000, whichever is the lesser, for provisions taxing 30% of such income, or 60% of the amount it exceeded $6,000, whichever was the lesser, for taxable years beginning before July 1, 1964, and 25% of such income, or 50% of the amount it exceeded $6,000, whichever was the lesser, for taxable years beginning after June 30, 1964, in par. (1), and in par. (2), "on the mutual insurance company taxable income computed as provided in section 11(c) as though the mutual insurance company taxable income were the taxable income referred to in section 11(c)" for "of 22 percent of the mutual insurance company taxable income (computed without regard to the de- duction provided in section 242 for partially tax exempt interest) in excess of $25,000". Subsec. (c)(1). Pub. L. 88-272, § 123(a)(2), substituted "December 31, 1963" for "December 31, 1962", provi- sions setting a normal tax of 22% of the taxable in- vestment income, or 44% of the amount such income exceeds $3,000, whichever is the lesser, for provisions taxing 30% of such income, or 60% of the amount it exceeded $3,000, whichever was the lesser, for taxable years beginning before July 1, 1964, and 25% of such income, or 50% of the amount it exceeded $3,000, whichever was the lesser, for taxable years beginning Page 521