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131 STAT. 2235 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(ii) reserves (other than deficiency, contingency, or unearned premium reserves) for life and health insurance risks and life and health insurance claims with respect to contracts providing coverage for mor- tality or morbidity risks. ‘‘(B) LIMITATIONS ON AMOUNT OF LIABILITIES.—Any amount determined under clause (i) or (ii) of subparagraph (A) shall not exceed the lesser of such amount— ‘‘(i) as reported to the applicable insurance regu- latory body in the applicable financial statement described in paragraph (4)(A) (or, if less, the amount required by applicable law or regulation), or ‘‘(ii) as determined under regulations prescribed by the Secretary. ‘‘(4) OTHER DEFINITIONS AND RULES.—For purposes of this subsection— ‘‘(A) APPLICABLE FINANCIAL STATEMENT.—The term ‘applicable financial statement’ means a statement for financial reporting purposes which— ‘‘(i) is made on the basis of generally accepted accounting principles, ‘‘(ii) is made on the basis of international financial reporting standards, but only if there is no statement that meets the requirement of clause (i), or ‘‘(iii) except as otherwise provided by the Secretary in regulations, is the annual statement which is required to be filed with the applicable insurance regu- latory body, but only if there is no statement which meets the requirements of clause (i) or (ii). ‘‘(B) APPLICABLE INSURANCE REGULATORY BODY.—The term ‘applicable insurance regulatory body’ means, with respect to any insurance business, the entity established by law to license, authorize, or regulate such business and to which the statement described in subparagraph (A) is provided.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 14502. REPEAL OF FAIR MARKET VALUE METHOD OF INTEREST EXPENSE APPORTIONMENT. (a) IN GENERAL.—Paragraph (2) of section 864(e) is amended to read as follows: ‘‘(2) GROSS INCOME AND FAIR MARKET VALUE METHODS MAY NOT BE USED FOR INTEREST.—All allocations and apportion- ments of interest expense shall be determined using the adjusted bases of assets rather than on the basis of the fair market value of the assets or gross income.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2017. TITLE II SEC. 20001. OIL AND GAS PROGRAM. (a) DEFINITIONS.—In this section: (1) COASTAL PLAIN.—The term ‘‘Coastal Plain’’ means the area identified as the 1002 Area on the plates prepared by 26 USC 3143 note. 26 USC 864 note. 26 USC 864. 26 USC 1297 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00183 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS