To amend the Internal Revenue Code of 1986 with respect to the amortization of goodwill and certain other intangibles.

Amends the Internal Revenue Code to allow an amortization deduction with respect to certain intangible property that is acquired and held by a taxpayer in connection with the conduct of a trade or business or an activity engaged in for the production of income. Provides for determining such deduction by amortizing the adjusted basis (for purposes of determining gain) of such intangible ratably over the 14-year period beginning with the month in which the intangible was acquired. Disallows any other depreciation or amortization deduction with respect to such intangible. Provides that amortization intangibles do not include intangibles that are created by the taxpayer or that arise solely by reason of entering into a renewal of a contract to which the taxpayer is a party.

Describes an amortizable intangible as : (1) goodwill; (2) going concern value; (3) certain specified types of intangible property that generally relate to workforce, information base, know-how, customers, suppliers, or other similar items; (4) any license, permit, or other right granted by a governmental unit, agency, or instrumentality; (5) any covenant not to compete (or other arrangement to the extent that the arrangement has substantially the same effect as a convenant not to compete) entered into in connection with the direct or indirect acquisition of an interest in a trade or business or substantial portion thereof; and (6) any franchise, trademark, or trade name.

Excludes from treatment as an amortizable intangible: (1) any property of a kind that is regularly traded on an established market; (2) a patent or copyright that is not acquired in a transaction (or a series of related transactions) involving the acquisition of a trade or business or a substantial portion thereof; (3) a franchise to engage in any professional sport, and any item acquired in connection with such franchise; (4) any license, permit, or other right of an indefinite duration that is granted by a governmental unit, agency, or instrumentality; and (5) certain contract rights, to the extent provided in regulations, if such rights have a fixed duration and are not renewable and are not acquired in a transaction involving the acquisition of assets constituting a trade or business or substantial portion thereof.

Sets forth special rules governing the application of the amortization deduction.

Continues the present-law treatment of certain contingent amounts that are paid or incurred on account of the transfer of a franchise, trademark, or trade name.

Provides for the treatment of assumption reinsurance transactions of insurance companies.