Reduces the amount of the income tax credit for the Louisiana Citizens Property Insurance Corporation Assessment and makes the reduction permanent (Item #46) (OR +$8,000,000 GF RV See Note)
Impact
The passage of HB 13 would impact state tax law by altering the benefits currently offered to taxpayers through the income tax credit associated with LCPIC assessments. By reducing the credit and making it a permanent cut, the state could potentially increase tax revenue. This move comes on the heels of ongoing discussions around financial sustainability for insurance markets in Louisiana, particularly those affected by natural disasters, and reflects a larger strategy of tax reform and prioritization of state resources.
Summary
House Bill 13 aims to amend the income tax credit related to assessments made by the Louisiana Citizens Property Insurance Corporation (LCPIC). Initially, the bill proposes to reduce the credit amount allowed from 72% to 50% of the surcharges and assessments paid by taxpayers concerning insurance assessments due to Hurricanes Katrina and Rita. This change is designed to make the reduction in the tax credit a permanent feature, eliminating a previously established sunset date for the reduction set for June 30, 2018.
Sentiment
The sentiment surrounding HB 13 appears to be mixed. Supporters argue that it would provide necessary adjustments to tax credits that no longer align with current economic realities and assist in stabilizing the insurance market. Conversely, critics may view the bill as a detrimental step toward higher tax burdens for homeowners, particularly those still recovering from the financial impact of past hurricanes. This division reflects broader concerns about tax policy implications and financial support for residents in disaster-prone areas.
Contention
Notable points of contention include the debate over whether reducing the tax credit will help stabilize the insurance landscape or if it will disproportionately affect those who are still financially reeling from the aftereffects of Hurricanes Katrina and Rita. Opponents may voice concerns about fairness and the adequacy of support for vulnerable populations who rely on these credits. Ultimately, the permanence of the reduction could symbolize a shift in the state's approach to disaster recovery and taxpayer assistance, stirring further debate in the legislature.
Reduces the amount of the income tax credit for the Louisiana Citizens Property Insurance Corporation Assessment and makes the reduction permanent (Item #46) (OR +$17,000,000 GF RV See Note)
Reduces the amount of the income tax credit for the Louisiana Citizens Property Insurance Corporation Assessment and makes the reduction permanent (Item #46) (OR +$17,000,000 GF RV See Note)
Reduces the amount of the income tax credit for the Louisiana Citizens Property Insurance Corporation Assessment and makes the reduction permanent (Item #46) (EN +$17,000,000 GF RV See Note)
Provides for the operability of the tax credit for Citizens Property Insurance Corporation 2005 assessment. (gov sig) (Item Nos. 46 and 47) (EG +$17,000,000 GF RV See Note)
Provides for the suspension of Louisiana Citizens Property Insurance Corporation assessment income tax credit. (gov sig) (EG +$32,400,000 GF RV See Note)