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)
Impact
By enabling small employers to receive a tax break on health insurance premiums, HB 147 is intended to enhance employee welfare and access to healthcare. The legislation may result in more small businesses choosing to offer health insurance, which could have positive implications for public health in Louisiana. Additionally, the bill modifies existing laws regarding tax credits for insurance companies that invest in state-approved ventures, potentially reshaping how those investments impact the premium tax credits available for those insurers.
Summary
House Bill 147 introduces a significant tax incentive aimed at small businesses in Louisiana. Specifically, the bill provides an income tax credit of up to 30% for small employers who pay for health insurance premiums for their employees. This initiative is designed to alleviate some financial burdens for small businesses, especially those employing ten or fewer individuals, thus supporting their capacity to offer health benefits that are crucial for attracting and retaining workers.
Sentiment
The general sentiment surrounding the bill appears to be supportive among small business advocates who see it as a positive step towards making health insurance more accessible to employees in the private sector. Proponents argue that this could also stimulate economic growth by improving employee satisfaction and productivity. However, concerns may arise regarding the sufficiency of the credit amount in offsetting the costs of health insurance in an era of rising premiums.
Contention
Despite its benefits, there are notable points of contention regarding HB 147, particularly concerning the limitations placed on the size of businesses that qualify for the credit. Critics might argue that setting an arbitrary employee threshold could exclude those slightly larger businesses that also struggle with health insurance costs. Additionally, the bill's provisions to reduce premium tax credits for insurers investing in local assets may face scrutiny, with concerns regarding the potential impact on insurer operations and their willingness to invest in local economies.
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)