1. Short title This Act may be cited as the Insurance Company Tax Modernization and Parity Act of 2017 . 2. Consolidation of life insurance companies with other companies permitted (a) In general Section 1504(b) of the Internal Revenue Code of 1986 is amended by striking paragraph (2) and by redesignating paragraphs (3) through (8) as paragraphs (2) through (7), respectively. (b) Conforming amendments (1) Section 1503 of the Internal Revenue Code of 1986 is amended by striking subsection (c) and by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively. (2) Section 1504 of such Code is amended by striking subsection (c) and by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively. (3) Section 243(b)(2)(A) of such Code is amended by striking sections 1504(b)(2), 1504(b)(4), and 1504(c) and inserting section 1504(b)(3) . (4) Section 805(a)(4)(E) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2) . (5) Section 818(e)(1) of such Code is amended to read as follows: (1) Items of companies other than insurance companies If an affiliated group includes members which are and which are not taxed under section 801, all items of the members of such group which are not taxed under section 801 shall not be taken into account in determining the amount of the tentative LICTI of members of such group which are taxed under section 801. . (6) Section 832(b)(5)(D)(ii)(II) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2) . (7) Section 864(e)(5)(A) of such Code is amended by striking paragraph (4) and inserting paragraph (3) . (8) Section 936(i)(5)(A) of such Code is amended by striking section 1504(b)(3) or (4) and inserting section 1504(b)(2) or (3) . (9) Section 952(c)(1)(B)(vii)(II) of such Code is amended by striking 1504(b)(3) and inserting 1504(b)(2) . (10) Section 953(d)(3) of such Code is amended by striking 1503(d) and inserting 1503(c) . (11) Section 954(h)(4)(F)(ii) of such Code is amended by striking