# 119-hr-1481: CART Act of 2025

119-hr-1481, CART Act of 2025, is a 119th Congress bill sponsored by Rep. LaHood, Darin [R-IL-16] (R-IL); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-1481
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-1481
- Congress: 119
- Title: CART Act of 2025
- Status: introduced
- Introduced: 2025-02-21
- Sponsor: Rep. LaHood, Darin [R-IL-16] (R-IL)
- Cosponsors: 2
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Creates a tax and regulatory regime for domestic catastrophic risk transfer companies (CRTCs).** It sets rules for specially licensed U.S. insurers to collateralize and transfer very large, low‑probability losses, generally defined as losses above $25 million, and defines how those firms and their investors are taxed. - CRTC firms: Must be state‑licensed special purpose insurers that fully collateralize reinsurance. They may issue equity and debt and hold qualified investments. They must earn at least 90% of gross income from investment income or specified premiums and face a penalty tax if they fail the income test equal to the excess nonqualifying income over one-ninth of qualifying income, with a reasonable-cause exception. - Investors and security holders: Are taxed on a look‑through basis so dividend components are split into interest, tax-exempt interest, qualified dividends, other dividends, capital gains (treated as long‑term), and amounts tied to insurance premiums. The bill creates limited withholding exemptions for qualified investment income dividends to non‑U.S. holders with specified exceptions. - State and local taxes: Other taxing jurisdictions may not impose premium taxes on reinsurance premiums paid to a CRTC. If a jurisdiction nevertheless taxes those premiums the amount cannot exceed the tax that would apply under Internal Revenue Code section 4371 for foreign reinsurers.

## Cosponsors (2)

- Rep. Himes, James A. [D-CT-4] (D-CT), 2025-02-21T00:00:00.000Z
- Rep. Pettersen, Brittany [D-CO-7] (D-CO), 2025-02-24T00:00:00.000Z

## Provisions PRIA read

- New companies to transfer disaster risk: benefit, low. The bill would define and allow a new kind of company called a catastrophic risk transfer company (CRTC). These would be state‑licensed special purpose insurers that issue securities and enter reinsurance deals with unaffiliated parties. It would also limit who can tax reinsurance premiums paid to…
- How CRTC dividends are taxed: mixed, low. If you hold CRTC securities, the company would tell you what part of each dividend is interest, tax‑exempt interest, qualified dividends, capital gains, or premiums. You would be taxed as if you received those parts directly, and the capital gains part could be long‑term. A CRTC could also elect to…
- CRTC penalties and cure options: mixed, low. If a CRTC fails the 90% income test, it could disclose details and show reasonable cause. If accepted, it would owe a tax equal to non‑qualified income minus one‑ninth of qualified income. If a year is later found to be a non‑CART year, the company could avoid harsher treatment by making qualified…
- Tax rules for CRTC companies: mixed, low. A company would need to elect CRTC status each year and meet a 90% gross income test. At least 90% must come from qualified investment income or from certain fully collateralized insurance or reinsurance premiums, including from government agencies or companies with over $100,000,000 in assets, or…

## Related bills

- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-6644: 21st Century ROAD to Housing Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-6766: Essential Caregivers Act of 2025
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-1065: Protect Our Letter Carriers Act of 2025

## Sources
- [119-hr-1481 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/1481)

## Related
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-6644: 21st Century ROAD to Housing Act](https://policyrisk.com/legislation/119-hr-6644)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-6766: Essential Caregivers Act of 2025](https://policyrisk.com/legislation/119-hr-6766)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-1065: Protect Our Letter Carriers Act of 2025](https://policyrisk.com/legislation/119-hr-1065)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-1481 (as of 2025-12-21).