MODIFICATION OF RULES FOR LIFE INSURANCE PRORATION FOR PURPOSES OF DETERMINING THE DIVIDENDS RECEIVED DEDUCTION.

SEC. 13518. MODIFICATION OF RULES FOR LIFE INSURANCE PRORATION FOR PURPOSES OF DETERMINING THE DIVIDENDS RECEIVED DEDUCTION.(a) In General.—Section 812 is amended to read as follows:“SEC. 812. DEFINITION OF COMPANY’S SHARE AND POLICYHOLDER’S SHARE.“(a) Company’s Share.—For purposes of section 805(a)(4), the term ‘company’s share’ means, with respect to any taxable year beginning after December 31, 2017, 70 percent.“(b) Policyholder’s Share.—For purposes of section 807, the term ‘policyholder’s share’ means, with respect to any taxable year beginning after December 31, 2017, 30 percent.” .(b) Conforming Amendment.—Section 817A(e)(2) is amended by striking “, 807(d)(2)(B), and 812” and inserting “and 807(d)(2)(B)”.(c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.