LIFE INSURANCE DEPARTMENTS OF MUTUAL SAVINGS BANKS.

SEC. 346. LIFE INSURANCE DEPARTMENTS OF MUTUAL SAVINGS BANKS. (a) Computation of Tax.—Supplement A of chapter 1 is hereby amended by adding at the end thereof the following new section: “SEC. 110. MUTUAL SAVINGS BANKS CONDUCTING LIFE INSURANCE BUSINESS. “(a) Alternative Tax.—In the case of a mutual savings bank not having capital stock represented by shares, authorized under State law to engage in the business of issuing life insurance contracts, and which conducts a life insurance business in a separate department the accounts of which are maintained separately from the other accounts of the mutual savings bank, there shall be levied, collected, and paid, in lieu of the taxes imposed by sections 13 and 15, or section 117 (c) (1), a tax consisting of the sum of the partial taxes determined under paragraphs (1) and (2): 65 Stat. 518 “(1) A partial tax computed upon the net income determined without regard to any items of gross income or deductions properly allocable to the business of the life insurance department, at the rates and in the manner as if this section has not been enacted: and “(2) a partial tax computed upon the net income (as defined in section 201 (c) (7)) of the life insurance department determined without regard to any items of gross income or deductions not properly allocable to such department, at the rates and in the manner provided in Supplement G with respect to life insurance companies. “(b) Limitations of Section.—The provisions of subsection (a) shall be applicable only if the life insurance department would, if it were treated as a separate corporation, qualify as a life insurance company under section 201 (b).” (b) Technical Amendment.—Section 13 (relating to normal tax on corporations) is hereby amended by adding at the end thereof the following new subsection: “(f) Mutual Savings Banks Conducting Life Insurance Business.—For special tax, in lieu of the taxes imposed by this section and section 15, in the case of a mutual savings bank conducting a life insurance business, see section 110.” (c) Effective Date.—The amendments made by this section shall be applicable only with respect to taxable years beginning after December 31, 1951.