CAPITALIZATION OF CERTAIN POLICY ACQUISITION EXPENSES.

SEC. 13519. CAPITALIZATION OF CERTAIN POLICY ACQUISITION EXPENSES.(a) In General.—(1) Section 848(a)(2) is amended by striking “120-month” and inserting “180-month”.(2) Section 848(c)(1) is amended by striking “1.75 percent” and inserting “2.09 percent”.(3) Section 848(c)(2) is amended by striking “2.05 percent” and inserting “2.45 percent”.(4) Section 848(c)(3) is amended by striking “7.7 percent” and inserting “9.2 percent”.(b) Conforming Amendments.—Section 848(b)(1) is amended by striking “120-month” and inserting “180-month”.(c) Effective Date.—(1) In general.—The amendments made by this section shall apply to net premiums for taxable years beginning after December 31, 2017.(2) Transition rule.—Specified policy acquisition expenses first required to be capitalized in a taxable year beginning before January 1, 2018, will continue to be allowed as a deduction ratably over the 120-month period beginning with the first month in the second half of such taxable year.