Reduces the amount of the insurance premium tax for certain Louisiana investments (Item #6) (OR +$16,600,000 GF RV See Note)
Impact
The impact of HB 56 on state laws revolves around its adjustment to the tax credits related to insurers' investments in Louisiana. By decreasing the benefits of such investments, the bill essentially discourages the flow of capital into local banks and other qualifying financial institutions. As a result, the state could see a reduction in overall investment in critical areas that bolster local economies. The legislation aims at creating a shift in fiscal responsibility among insurers while aligning their investment strategies with the state’s economic objectives.
Summary
House Bill 56 seeks to amend the existing insurance premium tax structure in Louisiana by reducing the amount of tax credit available to insurers who make specified investments within the state. Specifically, the bill introduces a 10% reduction in the insurance premium tax credit for tax years 2016 through 2018, which directly affects insurers' financial incentives to invest in local financial institutions. The bill aims to recalibrate the fiscal landscape concerning how insurers contribute to the state's economy through their investment choices.
Sentiment
The sentiment surrounding HB 56 appears to be mixed among legislators and stakeholders. Supporters may argue that the reduction in tax credits is a necessary measure to ensure that the state can sustain its fiscal responsibilities, while opponents could contend that this action effectively diminishes incentives for investment in local economies. The dialogue indicates that some lawmakers are deeply concerned about the balance between the state's revenue needs and fostering an environment conducive to insurance investments, reflecting a broader debate on economic policy.
Contention
Notable points of contention arising from HB 56 include the potential long-term effects on local financial markets and insurer behavior in Louisiana. Critics of the bill argue that by lessening the incentives for insurers to invest locally, the state risks stunting economic growth and undermining financial stability in the region. This creates a significant discussion about the broader implications of state legislation on local investment dynamics, and how policy changes can either foster or hinder growth in specific sectors, especially financial services.
Reduces the amount of the insurance premium tax credit for insurers who invest their assets in certain La. investments through July 1, 2017 (OR +$1,544,000 GF RV See Note)
Establishes a flat rate of insurance premium tax and provides relative to certain insurance premium tax credits and exemptions (RR SEE FISC NOTE GF RV)
Adds certain investments by businesses issuing life insurance policies to investments eligible for the insurance premium tax credit (OR DECREASE GF RV See Note)
Provides an income tax credit for certain small employers which pay health insurance premiums for employees and reduces the amount of the premium tax credit for insurers which invest their assets in La. (OR DECREASE GF RV See Note)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.