Bill Summary
This bill, known as the "Puerto Rico Insurance Excise Tax Exemption Act of 2019," aims to amend the Internal Revenue Code of 1986 by exempting certain insurance policies issued by United States territories and possessions from the foreign insurer excise tax. This means that policies such as insurance, indemnity bonds, annuity contracts, and reinsurance issued by partnerships or corporations under the laws of any US territory or possession will not be subject to this tax, unless they are covered by a policy of reinsurance issued by a foreign insurer or reinsurer. This exemption will apply to premiums paid after the date of enactment of the bill.
Possible Impacts
1. If a person living in Puerto Rico purchases an insurance policy from a company based in the United States, they may be exempt from paying the foreign insurer excise tax, resulting in potential cost savings for the individual.
2. The exemption of certain insurance policies issued by United States territories and possessions from the foreign insurer excise tax may lead to an increase in competition within the insurance industry, potentially providing more options and potentially lower prices for consumers.
3. The passage of this Act may also benefit insurance companies based in United States territories and possessions, as they may see an increase in business and revenue due to the tax exemption.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1483 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 1483
To amend the Internal Revenue Code of 1986 to exempt from the foreign
insurer excise tax certain insurance policies issued by United States
territory and possession insurers.
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IN THE HOUSE OF REPRESENTATIVES
March 4, 2019
Miss Gonzalez-Colon of Puerto Rico (for herself, Mrs. Kirkpatrick, Mr.
King of New York, Mr. Fitzpatrick, and Mr. Soto) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to exempt from the foreign
insurer excise tax certain insurance policies issued by United States
territory and possession insurers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Puerto Rico Insurance Excise Tax
Exemption Act of 2019''.
SEC. 2. CERTAIN INSURANCE POLICIES ISSUED BY UNITED STATES TERRITORY
AND POSSESSION INSURERS EXEMPT FROM FOREIGN INSURER
EXCISE TAX.
(a) In General.--Section 4373 of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(3) Territories and possessions.--Any policy of
insurance, indemnity bond, annuity contract, or policy of
reinsurance issued by a partnership or corporation created or
organized under the laws of any territory or possession of the
United States, unless any of the hazards, risks, losses, or
liabilities covered thereby are covered by a policy of
reinsurance issued by a foreign insurer or reinsurer (other
than such a partnership or corporation).''.
(b) Effective Date.--The amendments made by this section shall
apply to premiums paid after the date of the enactment of this Act.
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