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131 STAT. 2148 PUBLIC LAW 115–97—DEC. 22, 2017 (i) If the amount determined under subparagraph (A)(i) exceeds the amount determined under subpara- graph (A)(ii), 1/8 of such excess shall be taken into account, for each of the 8 succeeding taxable years, as a deduction under section 805(a)(2) or 832(c)(4) of such Code, as applicable. (ii) If the amount determined under subparagraph (A)(ii) exceeds the amount determined under subpara- graph (A)(i), 1/8 of such excess shall be included in gross income, for each of the 8 succeeding taxable years, under section 803(a)(2) or 832(b)(1)(C) of such Code, as applicable. SEC. 13518. MODIFICATION OF RULES FOR LIFE INSURANCE PRORA- TION FOR PURPOSES OF DETERMINING THE DIVIDENDS RECEIVED DEDUCTION. (a) IN GENERAL.—Section 812 is amended to read as follows: ‘‘SEC. 812. DEFINITION OF COMPANY’S SHARE AND POLICYHOLDER’S SHARE. ‘‘(a) COMPANY’S SHARE.—For purposes of section 805(a)(4), the term ‘company’s share’ means, with respect to any taxable year beginning after December 31, 2017, 70 percent. ‘‘(b) POLICYHOLDER’S SHARE.—For purposes of section 807, the term ‘policyholder’s share’ means, with respect to any taxable year beginning after December 31, 2017, 30 percent.’’. (b) CONFORMING AMENDMENT.—Section 817A(e)(2) is amended by striking ‘‘, 807(d)(2)(B), and 812’’ and inserting ‘‘and 807(d)(2)(B)’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 13519. CAPITALIZATION OF CERTAIN POLICY ACQUISITION EXPENSES. (a) IN GENERAL.— (1) Section 848(a)(2) is amended by striking ‘‘120-month’’ and inserting ‘‘180-month’’. (2) Section 848(c)(1) is amended by striking ‘‘1.75 percent’’ and inserting ‘‘2.09 percent’’. (3) Section 848(c)(2) is amended by striking ‘‘2.05 percent’’ and inserting ‘‘2.45 percent’’. (4) Section 848(c)(3) is amended by striking ‘‘7.7 percent’’ and inserting ‘‘9.2 percent’’. (b) CONFORMING AMENDMENTS.—Section 848(b)(1) is amended by striking ‘‘120-month’’ and inserting ‘‘180-month’’. (c) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by this section shall apply to net premiums for taxable years beginning after December 31, 2017. (2) TRANSITION RULE.—Specified policy acquisition expenses first required to be capitalized in a taxable year beginning before January 1, 2018, will continue to be allowed as a deduc- tion ratably over the 120-month period beginning with the first month in the second half of such taxable year. SEC. 13520. TAX REPORTING FOR LIFE SETTLEMENT TRANSACTIONS. (a) IN GENERAL.—Subpart B of part III of subchapter A of chapter 61, as amended by section 13306, is amended by adding at the end the following new section: 26 USC 848 note. 26 USC 812 note. 26 USC 812. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00096 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS