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 475 Original 2025 Regular Session Firment
Abstract: Increases the maximum amount of insurance premium tax credits authorized to be
claimed in a fiscal year for retaliatory taxes paid by domestic insurers from $9M to $25M
and extends the termination date of the credit from Dec. 31, 2029 to Dec. 31, 2034.
Present law with regard to retaliatory fees, requires that when any other state imposes additional fees,
taxes, or penalties on La. insurers doing business in another state, La. is required to impose the same
additional fees, taxes, and penalties on the other states' insurers doing business in La. Present law
further requires insurers organized under other state's laws that are admitted to transact business in
La. to pay the same fees to the commissioner of insurance as the insurer would pay in the state in
which the insurer is organized.
Present law provides for a refundable insurance premium tax credit for any La. domestic insurer
(domestic insurer) that is authorized to write and does write insurance in this state and writes
insurance in at least one other state. The amount of the credit is equal to the amount of any
retaliatory tax paid to any other state for the period in which the retaliatory tax was paid. The credit
shall be applied against the domestic insurer's state premium tax liability and any credit amount in
excess of its premium tax liability shall be refunded to the domestic insurer.
Present law limits the maximum amount of credits that may be claimed by domestic insurers in any
fiscal year to $9M. However, if credits claimed exceed $9M in any fiscal year, the commissioner
shall make refunds on a pro rata basis to eligible domestic insurers based on the proportion of the
total amount of retaliatory tax paid by each insurer for the relevant time period.
Proposed law retains present law but increases the maximum amount of credits that may be claimed
by domestic insurers in any fiscal year from $9M to $25M.
Present law prohibits a credit from being allowed for retaliatory taxes incurred or paid after Dec. 31,
2029.
Proposed law extends the date for which a credit shall be allowed for retaliatory taxes incurred or
paid from Dec. 31, 2029, to Dec. 31, 2034.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 22:836(B)(intro. para.), (6), (7), and (9))