Expands the types of investments eligible for the insurance premium tax credit (EN DECREASE GF RV See Note)
Impact
The bill's enactment is poised to have a significant impact on state laws regarding tax credits for businesses. By broadening the criteria for qualifying investments, HB411 aims to foster economic development within Louisiana. This move is particularly focused on supporting smaller life insurance companies, especially those with total admitted assets under three million dollars, which are often crucial in local economic contexts. The criteria require these businesses to maintain principal operations and a significant workforce within the state, potentially bolstering local economies.
Summary
House Bill 411 aims to expand the types of investments that qualify for the insurance premium tax credit in Louisiana. Specifically, it targets businesses that issue life insurance policies, allowing them to make qualifying investments that include cash deposits and certificates of deposit with Louisiana-based banks and financial institutions. This change is set to take effect on January 1, 2024, and is intended to encourage local investment by providing tax incentives to these businesses.
Sentiment
General sentiment around HB 411 appears to be favorable, especially among proponents of local business growth and economic development initiatives. Supporters of the bill highlight its potential to stimulate investment in Louisiana, thereby enhancing financial stability and business opportunities within the state. While there are no recorded prominent oppositions or contentious debates surrounding the bill, its implications may stir discussions on the adequacy and effectiveness of tax incentives in driving local investment and economic growth.
Contention
Notable points of contention may emerge regarding the adequacy of the bill in addressing varying needs across different sectors of the insurance industry. Critics may question whether the benefits accrue equitably among larger and smaller enterprises or whether the tax incentives are sufficient to make a meaningful impact on the overall economic landscape. The focus on life insurance companies could also lead to discussions about the balance between supporting specific industries and ensuring fair competition across the financial services sector.
Adds certain investments by businesses issuing life insurance policies to investments eligible for the insurance premium tax credit (OR DECREASE 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)
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)
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.