Louisiana House Bill HB473

Louisiana 2019 Regular Session

• Introduced: 3/29/19
• Refer: 3/29/19
• Refer: 4/8/19

Caption

Adds certain investments by businesses issuing life insurance policies to investments eligible for the insurance premium tax credit (OR DECREASE GF RV See Note)

Impact

The proposal is expected to have a significant impact on state laws concerning taxation and business operation areas. By broadening the tax credit eligibility, HB 473 encourages small life insurance businesses to invest in local financial institutions, thus fostering a more robust economic ecosystem. The structure of the tax credits, which increase based on the percentage of assets invested in Louisiana, is designed to motivate insurers to commit more resources to the state, potentially leading to job creation and increased economic activity.

Summary

House Bill 473 aims to enhance the economic environment for small businesses in Louisiana by allowing certain investments made by businesses issuing life insurance policies to qualify for the insurance premium tax credit. This bill defines qualifying investments to include certificates of deposit and cash deposits held by Louisiana banks or trust companies, provided that the business in question meets specific criteria such as being domiciled in Louisiana and maintaining a majority of its employees within the state. The legislation is designed to promote local financial growth by incentivizing investments within the state.

Sentiment

The sentiment surrounding HB 473 appears to be generally positive among proponents, particularly those advocating for small business support and economic development. Supporters argue that the bill provides necessary incentives for life insurance companies to invest in Louisiana, aligning with broader economic goals. However, there may be concerns from some quarters regarding the long-term effectiveness of tax credits and their actual impact on local community development.

Contention

Notable points of contention surrounding HB 473 may involve discussions about the equity of tax incentives directed specifically at the life insurance sector, as some stakeholders could argue that similar incentives should be available to other industries as well. Additionally, there may be debates regarding the government's role in steering investment through tax credits, as well as concerns about the potential for unintended consequences such as over-reliance on specific tax advantages by businesses rather than fostering a diverse economic base.