Bill extends insurer capital-loss carryover to 10 years

What does this do?

This bill makes two changes to federal tax rules for insurance companies. First, losses on debt investments like bonds would be counted as ordinary losses, not capital losses, which follow stricter rules. Second, insurance companies would have 10 years instead of 5 to use past investment losses to offset future taxable gains.

Who does it affect?

These changes apply to most U.S. insurance companies. A few types are excluded, including certain small insurers, foreign insurers, and nonprofit health organizations.

Why does it matter?

Counting debt investment losses as ordinary losses gives insurance companies more flexibility in how those losses are treated at tax time. Extending the carryover period from 5 to 10 years means companies have a longer window to apply past losses against future gains.

Where does it stand?