Senate bill rewrites debt investment tax rules for domestic insurers
In committeeS. 1335Latest action
Sponsor: Thom Tillis · Senator · NC
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Official title: Secure Family Futures Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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S 1335 reclassifies insurer debt investments and doubles the capital loss carryforward window from 5 to 10 years.
45-second read · 4 questions answered below
What does this do?
S 1335 removes debt investments such as bonds and loans from the definition of capital assets for certain insurance companies, changing how gains and losses on those holdings are taxed. The bill also extends the period during which these companies can apply capital losses against future taxes, stretching the window from 5 years to 10 years.
Who does it affect?
Mid-sized and large domestic insurance companies, particularly life insurers selling policies to families, are directly affected. Policyholders may be indirectly affected if the changes influence their insurer's financial stability or product pricing.
Why does it matter?
Reclassifying debt investments is intended to reduce tax complications when insurance companies sell bonds they hold. Extending the loss carryforward period gives companies more time to offset tax liability with prior investment losses, which could affect company finances and, indirectly, policyholders.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedApr 8, 2025
- Senate committeeYou are here · Apr 8, 2025
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Finance.