A bill to amend the Internal Revenue Code of !954 to provide for the treatment of dividends received by a member of an affiliated group from a subsidiary that is excluded from the group solely because such subsidiary is a life insurance company.

Provides, under the Internal Revenue Code, that in the case of an affiliated group of corporations filing a consolidated return, there shall be excluded from consolidated personal holding company income and consolidated adjusted ordinary gross income dividends received by a member of the affiliated group from a taxable life insurance company that is not a member of the affiliated group. (Amends 26 U.S.C. 542(b))