Secure Family Futures Act of 2025

Summary

Excludes certain debt instruments held by defined "applicable insurance companies" from the tax code's definition of "capital asset," and extends a 10‑year capital loss carryover rule so that net capital losses incurred by those applicable insurance companies can be carried forward for 10 years. The changes target how some insurers treat gains and losses on debt instruments and take effect for debt acquired after December 31, 2025 and for net capital losses in taxable years beginning after December 31, 2025. The bill also defines which insurers are excluded from the new rule (for example, certain small‑insurer elections, some foreign insurers, and organizations covered by other specific insurance Code sections) and exempts face‑amount certificate companies under the Investment Company Act of 1940 from the new "applicable insurance company" classification.

• Excludes certain debt instruments held by defined "applicable insurance companies" from the tax code's definition of "capital asset."
• Adds a new definition of "applicable insurance company" and lists insurer types that are excluded from that definition.
• Expands the special 10‑year capital loss carryover to include net capital losses incurred by applicable insurance companies, not just foreign expropriation losses.
• Debt exclusion applies only to debt instruments acquired after December 31, 2025.
• The 10‑year carryover provision applies to net capital losses from taxable years beginning after December 31, 2025.
• Face‑amount certificate companies registered under the Investment Company Act of 1940 are excluded from being treated as applicable insurance companies.
• Does not appropriate funds or authorize new spending; it is a technical tax code amendment.
• Creates possible changes in how gains and losses on excluded debt are taxed for impacted insurers, with potential revenue implications that depend on future transactions and tax treatment.