Louisiana House Bill HB657

Louisiana 2021 Regular Session

• Introduced: 4/12/21
• Refer: 4/13/21

Caption

Expands the types of investments eligible for the insurance premium tax credit (OR DECREASE GF RV See Note)

Impact

If enacted, HB 657 will have a notable impact on state laws regarding tax credits connected to Louisiana investments. By expanding the eligibility criteria for the insurance premium tax credit, the bill promotes the retention of financial assets within the state. The changes would likely benefit smaller life insurance companies due to the specific stipulations that favor organizations with total admitted assets under three million dollars, thereby fostering a supportive environment for smaller businesses to thrive.

Summary

House Bill 657, introduced by Representative Glover, aims to expand the types of investments eligible for the insurance premium tax credit in Louisiana. This bill specifically targets businesses that issue life insurance policies and proposes that certain investments made by these businesses would now qualify for tax credits. The new investments included are certificates of deposits and cash deposits held in Louisiana banks or financial institutions. The intent of the bill is to encourage investments in local financial entities and stimulate the economy by promoting financial activity within Louisiana.

Sentiment

The general sentiment surrounding HB 657 appears to be positive among supporters, who see it as a strategic advantage for local businesses and an opportunity for greater economic development within the state. Many legislators believe that the bill will streamline access to tax credits, providing incentives for insurance companies to invest their resources locally. However, there might be concerns regarding the potential consequences for larger and more established companies that may not benefit from the same level of support and subsidy as smaller competitors.

Contention

Despite its supportive framework, there are arguments against the bill. Critics may view it as tailored favorably to smaller insurance firms, potentially risking larger entities' competitive balance. Additionally, the stipulations related to asset thresholds and percentage of employed workforce in Louisiana could raise questions about inclusivity and whether such regulations effectively benefit the broader market. Overall, the debate involves balancing the interests of local economic stimulation against the principles of fair competition within the insurance sector.