Revenue Code of 1986 shall be treated as references to such section as in effect before its repeal by the Tax Cuts and Jobs Act . . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. F Other international reforms 4501. Restriction on insurance business exception to passive foreign investment company rules (a) In general Section 1297(b)(2)(B) is amended to read as follows: (B) derived in the active conduct of an insurance business by a qualifying insurance corporation (as defined in subsection (f)), . (b) Qualifying insurance corporation defined Section 1297 is amended by adding at the end the following new subsection: (f) Qualifying insurance corporation For purposes of subsection (b)(2)(B)— (1) In general The term qualifying insurance corporation means, with respect to any taxable year, a foreign corporation— (A) which would be subject to tax under subchapter L if such corporation were a domestic corporation, and (B) the applicable insurance liabilities of which constitute more than 25 percent of its total assets, determined on the basis of such liabilities and assets as reported on the corporation’s applicable financial statement for the last year ending with or within the taxable year. (2) Alternative facts and circumstances test for certain corporations If a corporation fails to qualify as a qualified insurance corporation under paragraph (1) solely because the percentage determined under paragraph (1)(B) is 25 percent or less, a United States person that owns stock in such corporation may elect to treat such stock as stock of a qualifying insurance corporation if— (A) the percentage so determined for the corporation is at least 10 percent, and (B) under regulations provided by the Secretary, based on the applicable facts and circumstances— (i) the corporation is predominantly engaged in an insurance business, and (ii) such failure is due solely to runoff-related or rating-related circumstances involving such insurance business. (3)