; or , and by adding at the end the following: (9) any bond, debenture, note, or certificate or other evidence of indebtedness held by an applicable insurance company (as defined in subsection (b)(5)). . (2) Applicable insurance company Section 1221(b), as amended by this Act, is amended by adding at the end the following: (5) Applicable insurance company For purposes of subsection (a)(9)— (A) In general The term applicable insurance company means, with respect to any taxable year, an insurance company (as defined in the last sentence of section 816(a))— (i) which is subject to tax under section 801(a)(1) or section 831(a), (ii) with respect to which sections 831(b), 835, 842, and 847 do not apply, and (iii) which is not treated as a stock insurance company solely by reason of section 833(a)(1). (B) Permanent treatment by company as ordinary asset If an asset is treated as an asset described in subsection (a) (9) with respect to any applicable insurance company for any taxable year, such asset shall be treated as so described during any subsequent taxable year such asset is held by such company. . (3) Regulations Paragraph (4) of section 1221(b) is amended— (A) by striking The Secretary and inserting: (A) Related parties The Secretary , and (B) by adding at the end the following: (B) Assets of insurance companies The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of subsection (a)(9), including such regulations as may be necessary to prevent the avoidance of Federal income tax through the sale or exchange of assets described in such subsection. . (4) Effective date (A) In general The amendments made by this subsection shall apply to any bond, debenture, note, or certificate or other evidence of indebtedness held or acquired after the 90-day period beginning with the date of the enactment of this Act. (B) Transition rule If a taxpayer has a capital loss carryover to any taxable year of the taxpayer beginning after the close of the 90-day period described in