Louisiana Bill Would Reduce Insurer Investment Tax Credit; State Legislative Session to Convene April 25, 2011
Apr 12, 2011
Legislation designed to reduce the amount of premium tax credits for insurers that invest their assets in Louisiana was filed yesterday, April 11, 2011.
Sponsored by State Representative Christopher Roy, House Bill 147 relating to Insurance Premium Tax Credits would reduce the amount of premium tax credit for insurers that invest in qualifying Louisiana investments, as well as provide an income tax credit for certain small employers that pay health insurance premiums for employees.
The proposal would reduce the amount of credit against premium tax as follows:
- For investment of 1/6 of the assets, the reduction in the premium tax liability would be changed from 66 percent to 62 percent.
- For investment of 1/5 of the assets, the reduction in the premium tax liability would be changed from 75 percent to 71 percent.
- For investment of 1/4 of the assets, the reduction in the premium tax liability would be changed from 85 percent to 83 percent.
- For investment of 1/3, the reduction in the premium tax liability would be changed from 95 percent to 94 percent.
To view the text of HB 147, click here.
Louisiana’s 2011 Regular Legislative Session begins on April 25, 2011. Meanwhile, additional bills relating to reduction or elimination of the tax credit program are expected to be filed.
Should you have any questions or comments, please contact Colodny Fass.
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