- adjustment year
means the calendar year following any calendar year that includes the effective date of a change in the prescribed U.S. valuation interest rate for life insurance with guaranteed durations of more than 20 years (as defined in the National Association of Insurance Commissioners’ Standard Valuation Law).
- alternative energy facility
means a facility for producing electrical or thermal energy if the primary energy source for the facility is not oil, natural gas, coal, or nuclear power.
- amount paid
means—
- applicable accumulation test minimum rate
means the lesser of—
- applicable critical mineral
has the same meaning given such term under section 45X(c)(6).
- applicable guideline premium minimum rate
means the applicable accumulation test minimum rate (as defined in subsection (b)(3)) plus 2 percentage points.
- Attorney General
means the Attorney General of the United States.
- certified professional employer organization
means a person who applies to be treated as a certified professional employer organization for purposes of section 3511 and has been certified by the Secretary as meeting the requirements of subsection (b).
- chronically ill individual
means any individual who has been certified by a licensed health care practitioner as— Such term shall not include any individual otherwise meeting the requirements of the preceding sentence unless within the preceding 12-month period a licensed health care practitioner has certified that such individual meets such requirements.
- church
means a church or a convention or association of churches.
- cogeneration facility
means a facility which uses the same energy source for the sequential generation of electrical or mechanical power in combination with steam, heat, or other forms of useful energy.
- Commissioner
means the Commissioner of Internal Revenue.
- contract year
means the 12-month period beginning with the 1st month for which the contract is in effect, and each 12-month period beginning with the corresponding month in subsequent calendar years.
- contractual counterparty
means an entity with which the taxpayer has entered into a contract, agreement, or other arrangement.
- control
means—
- cooperative bank
means an institution without capital stock organized and operated for mutual purposes and without profit, which— In determining whether an institution meets the requirements referred to in subparagraph (B) of this paragraph, any reference to an association or to a domestic building and loan association contained in paragraph (19) shall be deemed to be a reference to such institution.
- corporation
includes associations, joint-stock companies, and insurance companies.
- covered nation
has the same meaning given such term under section 4872(f)(2) of title 10, United States Code.
- covered officer
means, with respect to an entity—
- death benefit
means the amount payable by reason of the death of the insured (determined without regard to any qualified additional benefits).
- domestic building and loan association
means a domestic building and loan association, a domestic savings and loan association, and a Federal savings and loan association—
- economic substance doctrine
means the common law doctrine under which tax benefits under subtitle A with respect to a transaction are not allowable if the transaction does not have economic substance or lacks a business purpose.
- effective control
means, with respect to a licensing agreement for the provision of intellectual property (or any other contract, agreement or other arrangement entered into with a contractual counterparty related to such licensing agreement) with respect to a qualified facility, energy storage technology, or the production of an eligible component, any of the following:
- electing 1987 partnership
means any publicly traded partnership if— A partnership which, but for this sentence, would be treated as an electing 1987 partnership shall cease to be so treated (and the election under subparagraph (C) shall cease to be in effect) as of the 1st day after December 31, 1997, on which there has been an addition of a substantial new line of business with respect to such partnership.
- eligible component
has the same meaning given such term under section 45X(c)(1).
- employee
includes an employee described in section 414(e)(3)(B).
- endowment contract
means a contract which is an endowment contract under the applicable law and which meets the requirements of subsection (a).
- energy storage technology
has the same meaning given such term under section 48E(c)(2).
- enrolled actuary
means a person who is enrolled by the Joint Board for the Enrollment of Actuaries established under subtitle C of the title III of the Employee Retirement Income Security Act of 1974.
- exchanged basis property
means property having a basis determined under any provision of subtitle A (or under any corresponding provision of prior income tax law) providing that the basis shall be determined in whole or in part by reference to other property held at any time by the person for whom the basis is to be determined.
- existing plan of insurance
means, with respect to any contract, any plan of insurance which was filed by the company issuing such contract in 1 or more States before September 28, 1983, and is on file in the appropriate State for such contract.
- fiduciary
means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.
- fiscal year
means an accounting period of 12 months ending on the last day of any month other than December.
- foreign estate
means an estate the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income under subtitle A.
- foreign government-related individual
means any individual temporarily present in the United States by reason of—
- foreign trust
means any trust other than a trust described in subparagraph (E) of paragraph (30).
- foreign-controlled entity
means—
- foreign-influenced entity
means an entity—
- future benefits
means death benefits and endowment benefits.
- guideline level premium
means the level annual amount, payable over a period not ending before the insured attains age 95, computed on the same basis as the guideline single premium, except that paragraph (3)(B)(iii) shall be applied by substituting “the applicable accumulation test minimum rate” for “the applicable guideline premium minimum rate”.
- guideline premium limitation
means, as of any date, the greater of—
- guideline single premium
means the premium at issue with respect to future benefits under the contract.
- income on the contract
means, with respect to any taxable year of the policyholder, the excess of—
- Indian tribal government
means the governing body of any tribe, band, community, village, or group of Indians, or (if applicable) Alaska Natives, which is determined by the Secretary, after consultation with the Secretary of the Interior, to exercise governmental functions.
- individual retirement plan
means—
- insurance interest rate
means, with respect to any contract issued in any calendar year, the lesser of—
- Internal Revenue Code of 1939
means the Internal Revenue Code enacted February 10, 1939, as amended.
- Internal Revenue Code of 1986
means this title, and the term “Internal Revenue Code of 1939” means the Internal Revenue Code enacted February 10, 1939, as amended.
- international organization
means a public international organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288–288f).
- joint return
means a single return made jointly under section 6013 by a husband and wife.
- levy
includes the power of distraint and seizure by any means.
- licensed health care practitioner
means any physician (as defined in section 1861(r)(1) of the Social Security Act) and any registered professional nurse, licensed social worker, or other individual who meets such requirements as may be prescribed by the Secretary.
- life insurance contract
means any contract which is a life insurance contract under the applicable law, but only if such contract—
- maintenance or personal care services
means any care the primary purpose of which is the provision of needed assistance with any of the disabilities as a result of which the individual is a chronically ill individual (including the protection from threats to health and safety due to severe cognitive impairment).
- manufactured product
means—
- material assistance cost ratio
means the amount (expressed as a percentage) equal to the quotient of—
- material assistance from a prohibited foreign entity
means—
- material change
includes any increase in the death benefit under the contract or any increase in, or addition of, a qualified additional benefit under the contract.
- mineral or natural resource
means any product of a character with respect to which a deduction for depletion is allowable under section 611;
- modified endowment contract
means any contract meeting the requirements of section 7702—
- nonrecognition transaction
means any disposition of property in a transaction in which gain or loss is not recognized in whole or in part for purposes of subtitle A.
- partner
includes a member in such a syndicate, group, pool, joint venture, or organization.
- partnership
includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a trust or estate or a corporation;
- periodic payment
means any payment (whether on a periodic basis or otherwise) made without regard to the extent of the costs incurred by the payee for qualified long-term care services.
- portion
means only the terms and benefits under a life insurance contract or annuity contract that are in addition to the terms and benefits under the contract without regard to long-term care insurance coverage.
- premiums paid
means the premiums paid under the contract less amounts (other than amounts includible in gross income) to which section 72(e) applies and less any excess premiums with respect to which there is a distribution described in subparagraph (B) or (E) of paragraph (7) and any other amounts received with respect to the contract which are specified in regulations.
- prohibited foreign entity
means a specified foreign entity or a foreign-influenced entity.
- publicly traded partnership
means any partnership if—
- qualified 20-pay contract
means any contract which—
- qualified additional benefits
means any—
- qualified blood collector organization
means an organization which is—
- qualified facility
means—
- qualified long-term care insurance contract
means any insurance contract if—
- qualified long-term care services
means necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services, which—
- qualified motor vehicle operating agreement
means any agreement with respect to a motor vehicle (including a trailer) which meets the requirements of subparagraphs (B), (C), and (D) of this paragraph.
- qualified solid waste disposal facility
means any facility if such facility provides solid waste disposal services for residents of part or all of 1 or more governmental units and substantially all of the solid waste processed at such facility is collected from the general public.
- qualifying income
means— For purposes of subparagraph (E), the term “mineral or natural resource” means any product of a character with respect to which a deduction for depletion is allowable under section 611;
- real property rent
means amounts which would qualify as rent from real property under section 856(d) if—
- regulated public utility
means— The term “regulated public utility” does not (except as provided in subparagraphs (G) and (H)) include a corporation described in subparagraphs (A) through (F), inclusive, unless 80 percent or more of its gross income (computed without regard to dividends and capital gains and losses) for the taxable year is derived from sources described in subparagraphs (A) through (F), inclusive.
- related entity
has the same meaning as when used in section 168(h).
- Secretary
means the Secretary of the Treasury or his delegate.
- Secretary of the Treasury
means the Secretary of the Treasury, personally, and shall not include any delegate of his.
- section 7702 applicable Federal interest rate
means, with respect to any adjustment year, the average (rounded to the nearest whole percentage point) of the applicable Federal mid-term rates (as defined in section 1274(d) but based on annual compounding) effective as of the beginning of each of the calendar months in the most recent 60-month period ending before the second calendar year prior to such adjustment year.
- section 7702 valuation interest rate
means, with respect to any adjustment year, the prescribed U.S. valuation interest rate for life insurance with guaranteed durations of more than 20 years (as defined in the National Association of Insurance Commissioners’ Standard Valuation Law) as effective in the calendar year immediately preceding such adjustment year.
- shareholder
includes a member in an association, joint-stock company, or insurance company.
- specified foreign entity
means—
- State long-term care plan
means any plan—
- stock
includes shares in an association, joint-stock company, or insurance company.
- storage facility
means a facility which uses energy storage technology within the meaning of section 48(c)(6).
- student
means any individual—
- substituted basis property
means property which is—
- Tax Court
means the United States Tax Court.
- tax return preparer
means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed by this title or any claim for refund of tax imposed by this title.
- taxable year
means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A.
- taxpayer
means any person subject to any internal revenue tax.
- teacher or trainee
means any individual—
- terminal rental adjustment clause
means a provision of an agreement which permits or requires the rental price to be adjusted upward or downward by reference to the amount realized by the lessor under the agreement upon sale or other disposition of such property.
- TIN
means the identifying number assigned to a person under section 6109.
- trade or business
includes the performance of the functions of a public office.
- transaction
includes a series of transactions.
- transferred basis property
means property having a basis determined under any provision of subtitle A (or under any corresponding provision of prior income tax law) providing that the basis shall be determined in whole or in part by reference to the basis in the hands of the donor, grantor, or other transferor.
- United States person
means—
- water treatment works facility
means any treatment works within the meaning of section 212(2) of the Federal Water Pollution Control Act.
- withholding agent
means any person required to deduct and withhold any tax under the provisions of section 1441, 1442, 1443, or 1461.
- work site employee
means, with respect to a certified professional employer organization, an individual who—