Louisiana Insurance Premium Tax Credit Regulatory Bill Sidelined Until 2011
Jun 17, 2010
After a hostile amendment was recently added to legislation relating to the Louisiana Investment Tax Credit Program, the bill, SB 321, apparently will not be taken up for final passage during the balance of the 2010 Louisiana Regular Legislative Session, which ends on June 21. Instead, it will remain on the State House of Representatives’ calendar for 2011.
Currently, Louisiana grants a reduction of insurance premium tax based upon the average of the percentage of the insurer’s assets that are invested and maintained in “qualifying Louisiana investments” at the end of each fiscal quarter for a fiscal year. “Qualifying Louisiana investments” are defined as a certificate of deposit issued in Louisiana by financial institutions operating in the State, or cash on deposit in a Louisiana account in a financial institution operating within the State.
SB 321 would provide that evidence of these qualifying Louisiana investments may be established by a deposit receipt, a bank statement, or a letter or other written document from the depository institution verifying that the funds were deposited in Louisiana.
In the interim, the Louisiana Department of Insurance will be issuing an advisory letter to insurers explaining the methodology for companies to make deposits in Louisiana banks in order to verify credits.
To view complete information on SB 321, click here.
Should you have any comments or questions, please contact Colodny Fass.
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