This bill proposes two significant amendments to the Internal Revenue Code of 1986, primarily benefiting certain insurance companies. First, it modifies Section 1221(a) to exclude specific debt instruments , such as notes, bonds, and debentures, from being classified as capital assets when held by an "applicable insurance company." This exclusion applies to debt acquired after December 31, 2025. Second, the legislation extends the period for capital loss carryovers for these same applicable insurance companies. Under the proposed change to Section 1212(a)(1)(C), these companies would be allowed to carry over net capital losses for up to 10 taxable years , an increase from the current five-year limit. This provision applies to net capital losses arising in taxable years beginning after December 31, 2025, offering enhanced flexibility in managing tax liabilities for qualifying insurers.