Par. 9. Sections 1.56A-0 through 1.56A-27 are added to read as follows:
(a) Overview. This section provides rules under section 56A(c)(11) of the Code for adjusting AFSI with respect to covered benefit plans. Paragraph (b) of this section provides for adjustments to AFSI with respect to covered benefit plans. Paragraph (c) of this section defines a covered benefit plan for purposes of this section. Paragraph (d) of this section provides the applicability date of this section.
(b) Adjustments to AFSI for covered benefit plans. AFSI is—
(1) Adjusted to disregard any amount of income, cost, expense, gain, or loss that otherwise would be included on a CAMT entity's AFS in connection with any covered benefit plan;
(2) Increased by any amount of income in connection with any covered benefit plan that is included in gross income for the taxable year under any provision of chapter 1; and
(3) Reduced by deductions allowed for the taxable year under any provision of chapter 1 with respect to any covered benefit plan.
(c) Covered benefit plan —(1) General definition. For purposes of section 56A(c)(11), a covered benefit plan is a plan described in paragraph (c)(2), (3), or (4) of this section.
(2) Qualified defined benefit pension plan. A plan is described in this paragraph (c)(2) if the plan is—
(i) A defined benefit plan for which the trust that is part of the plan is an employees' trust described in section 401(a) of the Code that is exempt from tax under section 501(a) of the Code; and
(ii) Not a multiemployer plan described in section 414(f) of the Code.
(3) Qualified foreign plan. A plan is described in this paragraph (c)(3) if the plan is a qualified foreign plan as defined in section 404A(e) of the Code.
(4) Other defined benefit plan. A plan is described in this paragraph (c)(4) if, under the accounting standards that apply to the AFS, the plan is treated as a defined benefit plan that provides post-employment benefits other than pension benefits.
(d) Applicability date. This section applies to taxable years ending after September 13, 2024.