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131 STAT. 2144 PUBLIC LAW 115–97—DEC. 22, 2017 (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. (d) PHASED INCLUSION OF REMAINING BALANCE OF POLICY- HOLDERS SURPLUS ACCOUNTS.—In the case of any stock life insur- ance company which has a balance (determined as of the close of such company’s last taxable year beginning before January 1, 2018) in an existing policyholders surplus account (as defined in section 815 of the Internal Revenue Code of 1986, as in effect before its repeal), the tax imposed by section 801 of such Code for the first 8 taxable years beginning after December 31, 2017, shall be the amount which would be imposed by such section for such year on the sum of— (1) life insurance company taxable income for such year (within the meaning of such section 801 but not less than zero), plus (2) 1⁄8 of such balance. SEC. 13515. MODIFICATION OF PRORATION RULES FOR PROPERTY AND CASUALTY INSURANCE COMPANIES. (a) IN GENERAL.—Section 832(b)(5)(B) is amended— (1) by striking ‘‘15 percent’’ and inserting ‘‘the applicable percentage’’, and (2) by inserting at the end the following new sentence: ‘‘For purposes of this subparagraph, the applicable percentage is 5.25 percent divided by the highest rate in effect under section 11(b).’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 13516. REPEAL OF SPECIAL ESTIMATED TAX PAYMENTS. (a) IN GENERAL.—Part III of subchapter L of chapter 1 is amended by striking section 847 (and by striking the item relating to such section in the table of sections for such part). (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 13517. COMPUTATION OF LIFE INSURANCE TAX RESERVES. (a) IN GENERAL.— (1) APPROPRIATE RATE OF INTEREST.—The second sentence of section 807(c) is amended to read as follows: ‘‘For purposes of paragraph (3), the appropriate rate of interest is the highest rate or rates permitted to be used to discount the obligations by the National Association of Insurance Commissioners as of the date the reserve is determined.’’. (2) METHOD OF COMPUTING RESERVES.—Section 807(d) is amended— (A) by striking paragraphs (1), (2), (4), and (5), (B) by redesignating paragraph (6) as paragraph (4), (C) by inserting before paragraph (3) the following new paragraphs: ‘‘(1) DETERMINATION OF RESERVE.— ‘‘(A) IN GENERAL.—For purposes of this part (other than section 816), the amount of the life insurance reserves for any contract (other than a contract to which subpara- graph (B) applies) shall be the greater of— ‘‘(i) the net surrender value of such contract, or ‘‘(ii) 92.81 percent of the reserve determined under paragraph (2). 26 USC 847 note. 26 USC prec. 841. 26 USC 832 note. 26 USC 801 note. 26 USC 801 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00092 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS