# § 812. Definition of company’s share and policyholder’s share
**(a)** **Company’s share** December 31, 2017
For purposes of section 805(a)(4), the term “company’s share” means, with respect to any taxable year beginning after , 70 percent.
**(b)** **Policyholder’s share** December 31, 2017
For purposes of section 807, the term “policyholder’s share” means, with respect to any taxable year beginning after , 30 percent.
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**Source Credit**: (Added Pub. L. 98–369, div. A, title II, § 211(a), July 18, 1984, 98 Stat. 741; amended Pub. L. 99–514, title XVIII, § 1821(i), Oct. 22, 1986, 100 Stat. 2840; Pub. L. 100–203, title X, § 10241(b)(2)(B), Dec. 22, 1987, 101 Stat. 1330–420; Pub. L. 100–647, title I, § 1018(h)(1), title II, § 2004(p)(2), Nov. 10, 1988, 102 Stat. 3583, 3608; Pub. L. 104–188, title I, § 1602(b)(2), Aug. 20, 1996, 110 Stat. 1833; Pub. L. 105–34, title X, § 1084(b)(3), Aug. 5, 1997, 111 Stat. 955; Pub. L. 108–218, title II, § 205(b)(4), Apr. 10, 2004, 118 Stat. 610; Pub. L. 113–295, div. A, title II, § 221(a)(41)(G), Dec. 19, 2014, 128 Stat. 4044; Pub. L. 115–97, title I, § 13518(a), Dec. 22, 2017, 131 Stat. 2148.)
## Editorial Notes
### Codification
Another amended sections 101 and 264 of this title.
### Prior Provisions
A prior section 812, added , , ; amended , , ; , , ; , title XIX, § 1901(a)(99), , , 1781; , , , related to operations loss deductions, prior to the general revision of this part by .
Another prior section 812, , as added , , related to reserve and other policy liability deduction, prior to the general revision of this part by .
### Amendments
2017— amended section generally. Prior to amendment, section consisted of subsecs. (a) to (f), relating to definition of company’s share and policyholders’ share as pertaining to net and gross investment incomes.
2014—Subsec. (e)(2)(A). struck out “, 244,” after “section 243”.
2004—Subsec. (b)(3)(A). substituted “section 808” for “sections 808 and 809”.
1997—Subsec. (d)(1)(D). added subpar. (D).
1996—Subsec. (g). struck out subsec. (g) which read as follows: “ 133.—For purposes of this section and subsections (a) and (b) of section 807, the terms ‘gross investment income’ and ‘tax-exempt interest’ shall not include any interest received with respect to a securities acquisition loan (as defined in section 133(b)). Such interest shall not be included in life insurance gross income for purposes of subsection (b)(3).”
1988—Subsec. (b)(2). , substituted “In any case where neither the prevailing State assumed interest rate nor the applicable Federal interest rate is used, another appropriate rate shall be used for purposes of subparagraph (A).” for “In any case where the prevailing State assumed rate is not used, another appropriate rate shall be treated as the prevailing State assumed rate for purposes of subparagraph (A).”
Subsec. (e). , amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “For purposes of this section, the term ‘gross investment income’ shall not include any dividend received by the life insurance company which is a 100-percent dividend (as defined in section 805(a)(4)(C)). Such term also shall not include any dividend described in section 805(a)(4)(D) (relating to certain dividends in the case of foreign corporations).”
1987—Subsec. (b)(2). substituted “at the greater of the prevailing State assumed rate or the applicable Federal interest rate” for “at the prevailing State assumed rate or, where such rate is not used, another appropriate rate” in subpar. (A), and inserted provision at end that in any case where the prevailing State assumed rate is not used, another appropriate rate be treated as the prevailing State assumed rate for purposes of subpar. (A).
1986—Subsec. (b)(2). , inserted “or, where such rate is not used, another appropriate rate” after “assumed rate”, in subpar. (A) and added subpar. (D).
Subsec. (b)(3)(B). , struck out “(including tax-exempt interest)” after “insurance gross income” in cl. (ii) and inserted at end “For purposes of subparagraph (B)(ii), life insurance gross income shall be determined by including tax-exempt interest and by applying section 807(a)(2)(B) as if it did not contain clause (i) thereof.”
Subsec. (c). , amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “For purposes of this section, the term ‘net investment income’ means 90 percent of gross investment income.”
Subsec. (g). , added subsec. (g).
## Statutory Notes and Related Subsidiaries
### Effective Date of 2017 Amendment
> “The amendments made by this section [amending this section and
>
> ] shall apply to taxable years beginning after
>
> .”
, , , provided that:
### Effective Date of 2014 Amendment
Amendment by not applicable to preferred stock issued before (determined in the same manner as under as in effect before its repeal by ), see , set out as a note under .
Except as otherwise provided in , amendment by effective , subject to a savings provision, see , set out as a note under .
### Effective Date of 2004 Amendment
Amendment by applicable to taxable years beginning after , see , set out as a note under .
### Effective Date of 1997 Amendment
Amendment by applicable to contracts issued after , in taxable years ending after such date, with special provisions relating to changes in contracts to be treated as new contracts, see , set out as a note under .
### Effective Date of 1996 Amendment
Amendment by applicable to loans made after , with exception, and provisions relating to certain refinancings, see , set out as an Effective Date of Repeal note under former .
### Effective Date of 1988 Amendment
> “The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendments made by section 211 of the Tax Reform Act of 1984 [
>
> ].”
, , , provided that:
Amendment by effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, , to which such amendment relates, see , set out as a note under .
### Effective Date of 1987 Amendment
Amendment by applicable to contracts issued in taxable years beginning after , see , set out as a note under .
### Effective Date of 1986 Amendment
Amendment by effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .
### Effective Date
Section applicable to taxable years beginning after , see , set out as a note under .
### Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .