A bill to amend the Internal Revenue Code of 1954 to allow a business deduction for certain self-insurance reserves.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow an income tax deduction in an amount equal to self-insured losses attributable to the conduct of the taxpayer's trade or business. Limits the amount of such deduction for taxpayers maintaining a self-insurance trust to an amount equal to the value of total liability for self-insured losses per year minus the amount in the taxpayer's reserve account or self-insurance trust. Limits the amount of such deduction for taxpayers self-insuring through either an affiliated or unaffiliated insurer to an amount equal to the premium paid to the insurer. Provides that payments made with respect to self-insured losses shall be deductible only to the extent they exceed in the aggregate the contribution made to the self-insurance trust or reserve account for the year in which the losses were incurred. Requires an annual accounting of self-insured losses whether or not a deduction is taken with respect to that year. Includes in the gross income of the taxpayer any amount in a reserve account which exceeds any liability with respect to self-insured losses. Defines and sets requirements for a self-insurance trust. Defines "self-insured losses" as: (1) losses,…