# § 594. Alternative tax for 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 imposed in lieu of the tax imposed by section 11, a tax consisting of the sum of the partial taxes determined under paragraphs (1) and (2):
**(1)** A partial tax computed on the taxable 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 had not been enacted; and
**(2)** a partial tax computed on the income 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 subchapter L (sec. 801 and following) with respect to life insurance companies.
**(b)** **Limitations of section** Subsection (a) shall apply only if the life insurance department would, if it were treated as a separate corporation, qualify as a life insurance company under section 816.
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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 205; Mar. 13, 1956, ch. 83, § 5(3), 70 Stat. 49; Pub. L. 98–369, div. A, title II, § 211(b)(8), July 18, 1984, 98 Stat. 755; Pub. L. 115–97, title I, § 13001(b)(2)(E), Dec. 22, 2017, 131 Stat. 2096.)
## Editorial Notes
### Amendments
2017—Subsec. (a). substituted “tax imposed by section 11” for “taxes imposed by section 11 or section 1201(a)” in introductory provisions.
1984—Subsec. (b). substituted “section 816” for “section 801”.
1956—Subsec. (a)(2). Act , substituted “the income” for “the taxable income (as defined in section 803)”.
## Statutory Notes and Related Subsidiaries
### Effective Date of 2017 Amendment
Amendment by applicable to taxable years beginning after , see , set out as a note under .
### Effective Date of 1984 Amendment
Amendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .
### Effective Date of 1956 Amendment
Amendment by act , applicable only to taxable years beginning after , see section 6 of act , set out as a note under .