SECTION 2. CHANGES

.01 DOMESTIC ASSET/LIABILITY PERCENTAGES FOR 2000. The Secretary determines the domestic asset/liability percentage separately for life insurance companies and property and liability insurance companies. For the first taxable year beginning after December 31, 1999, the relevant domestic asset/liability percentages are:

114.2 percent for foreign life insurance companies, and

201.6 percent for foreign property and liability insurance companies.

.02 DOMESTIC INVESTMENT YIELDS FOR 2000. The Secretary is required to prescribe separate domestic investment yields for foreign life insurance companies and for foreign property and liability insurance companies. For the first taxable year beginning after December 31, 1999, the relevant domestic investment yields are:

8.2 percent for foreign life insurance companies, and

5.6 percent for foreign property and liability insurance companies.

.03 SOURCE OF DATA FOR 2000. The section 842(b) percentages to be used for the 2000 tax year are based on tax return data following the same methodology used for the 1999 year.