Page:United States Statutes at Large Volume 102 Part 4.djvu/696

 102 STAT. 3666

PUBLIC LAW 100-647—NOV. 10, 1988 (5) SPECIAL RULE FOR ANNUITY CONTRACTS.—In the case of annuity contracts, the amendments made by subsection (d) shall apply to contracts entered into after October 21, 1988.

26 USC 79 note.

SEC. 5013. VALUATION OF GROUP-TERM LIFE INSURANCE. (a) GENERAL RULE.—Subsection (c) of section 79 of the 1986 Code (relating to the determination of the cost of insurance) is amended by striking out the last sentence. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1988. SEC. 5014. STUDY. (a) GENERAL RULE.—The Secretary of the Treasury and the Comptroller General of the United States shall each conduct a study on— (1) the effectiveness of the revised tax treatment of life insurance and annuity products in preventing the sale of life insurance primarily for investment purposes, and (2) the policy justification for, and the practical implications of, the present-law treatment of the earnings on the cash surrender value of life insurance and annuity contracts in light of the reforms made by the Tax Reform Act of 1986. (b) REPORT.—Not later than June 1, 1989, the Secretary of the Treasury and the Comptroller General of the United States shall each submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the study conducted under subsection (a), together with such recommendations as they may deem advisable.

Subtitle C—Loss Transfer Rules for Alaska Native Corporations 26 USC 1504 no<^

SEC. 5021. REPEAL OF RULES PERMITTING LOSS TRANSFERS BY ALASKA NATIVE CORPORATIONS.

(a) GENERAL RULE.—Nothing in section 60(b)(5) of the Tax Reform Act of 1984 (as amended by section 1804(e)(4) of the Tax Reform Act of 1986)— (1) shall allow any loss (or credit) of any corporation which arises after April 26, 1988, to be used to offset the income (or tax) of another corporation if such use would not be allowable without regard to such section 60(b)(5) as so amended, or (2) shall allow any loss (or credit) of any corporation which arises on or before such date to be used to offset disqualified income (or tax attributable to such income) of another corporation if such use would not be allowable without regard to such section 60(b)(5) as so amended. (b) EXCEPTION FOR EXISTING CONTRACTS.—

(1) IN GENERAL.—Subsection (a) shall not apply to any loss (or credit) of any corporation if— (A) such corporation was in existence on April 26, 1988, and (B) such loss (or credit) is used to offset income assigned (or attributable to property contributed) pursuant to a binding contract entered into before July 26, 1988.

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