PUBLIC LAW 107-147—MAR. 9, 2002 116 STAT. 61 SEC. 611. TEMPORARY SPECIAL RULES FOR TAXATION OF LIFE INSUR- ANCE COMPANIES. (a) REDUCTION IN MUTUAL LIFE INSURANCE COMPANY DEDUC- TIONS NOT TO APPLY IN CERTAIN YEARS.—Section 809 (relating 26 USC 809. to reduction in certain deductions of material life insurance companies) is amended by adding at the end the following: "(j) DIFFERENTIAL EARNINGS RATE TREATED AS ZERO FOR CER- TAIN YEARS. —Notwithstanding subsection (c) or (f), the differential earnings rate shall be treated as zero for purposes of computing both the differential earnings amount and the recomputed differential earnings amount for a mutual life insurance company's taxable years beginning in 2001, 2002, or 2003. ". (b) EFFECTIVE DATE. —The amendment made by this section Applicability, shall apply to taxable years beginning after December 31, 2000. 26 USC 809 note. SEC. 612. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS. (a) IN GENERAL. — Paragraphs (2) and (3)(B) of section 220(i) (defining cut-ofF year) are each amended by striking "2002" each place it appears and inserting "2003". (b) CONFORMING AMENDMENTS.— (1) Paragraph (2) of section 220(j) is amended by striking "1998, 1999, or 2001" each place it appears and inserting "1998, 1999, 2001, or 2002". (2) Subparagraph (A) of section 220(j)(4) is amended by striking "and 2001" and inserting "2001, and 2002". (c) EFFECTIVE DATE. —The amendments made by this section 26 USC 220 note, shall take effect on January 1, 2002. SEC. 613. INCENTIVES FOR INDIAN EMPLOYMENT AND PROPERTY ON INDIAN RESERVATIONS. (a) EMPLOYMENT.— Subsection (f) of section 45A is amended by striking "December 31, 2003" and inserting "December 31, 2004". (b) PROPERTY. — Paragraph (8) of section 168(j) is amended by striking "December 31, 2003" and inserting "December 31, 2004". SEC. 614. SUBPART F EXEMPTION FOR ACTIVE FINANCING. (a) IN GENERAL.— (1) Section 953(e)( 10) is amended— (A) by striking "January 1, 2002" and inserting "January 1, 2007", and (B) by striking "December 31, 2001" and inserting "December 31, 2006". (2) Section 954(h)(9) is amended by striking "January 1, 2002" and inserting "January 1, 2007". (b) LIFE INSURANCE AND ANNUITY CONTRACTS. — (1) IN GENERAL. — Subparagraph (B) of section 954(i)(4) is amended to read as follows: "(B) LIFE INSURANCE AND ANNUITY CONTRACTS. — "(i) IN GENERAL.— Except as provided in clause (ii), the amount of the reserve of a qualifying insurance company or qualifying insurance company branch for any life insurance or annuity contract shall be equal to the greater of— "(I) the net surrender value of such contract (as defined in section 807(e)(1)(A)), or "(II) the reserve determined under paragraph (5).
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