July 1, 2015.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 649 Original 2015 Regular Session Thibaut
Abstract: Reduces the amount of the insurance premium tax credit for insurers who invest in
"qualified La. investments".
Present law authorizes a credit against the insurance premium tax for insurers who invest a portion
of their total admitted assets in La. financial institutions and investment products. The amount of
the credit is graduated, with the amount increasing as the percentage of an insurer's assets invested
in La. increases, as follows:
(1)A 66% tax credit for investment of 16% of assets.
(2)A 75% tax credit for investment of 20% of assets.
(3)An 85% tax credit for investment of 25% of assets.
(4)A 95% tax credit for investment of 33% of assets.
Present law defines "qualified La. investment" as:
(1)Certificates of deposit issued by a La. bank, savings and loan association, or savings bank;
or, investments in such instruments by a trust company with a main office or one or more
branches in La.
(2)Bonded debt issued with approval by the Louisiana State Bond Commission.
(3)Mortgages on property located in this state.
(4)Real property located in this state.
(5)Policy loans and other loans to residents and corporations domiciled in La.
(6) Common or preferred stock in corporations domiciled in this state.
(7)Cash on deposit in a La. bank, savings and loan association, or savings bank, or a trust
company holding such funds in trust, operating in the state with a main office or one or more
branches. Proposed law retains present law with respect to eligible investments.
Proposed law as provided in Section 1 is effective July 1, 2015, is applicable beginning July 1, 2015,
and ending July 1, 2017, and changes present law by changing the amount of the credit as follows:
(1)From a 66% to a 65% tax credit for investment of 16% of assets.
(2)From a 75% to a 74% tax credit for investment of 20% of assets.
(3)From an 85% to a 84% tax credit for investment of 25% of assets.
(4)From a 95% to a 94% tax credit for investment of 33% of assets.
Proposed law provided in Section 2 is effective July 1, 2017, is applicable beginning July 1, 2017,
and changes present law by changing the amount of the credit as follows:
(1)From a 65% to a 66% tax credit for investment of 16% of assets.
(2)From a 74% to a 75% tax credit for investment of 20% of assets.
(3)From an 84% to a 85% tax credit for investment of 25% of assets.
(4)From a 94% to a 95% tax credit for investment of 33% of assets.
Provisions of Section 1, 3, and 4, are effective on July 1, 2015, and applicable for taxable periods
on and after that date and on before July 1, 2017.
Provisions of Section 2 are effective July 1, 2017, and applicable for taxable periods beginning on
and after that date.
(Amends R.S. 22:832(B))