Increases the maximum amount of the construction code retrofitting deduction and expands the deduction to cover costs associated with "fortified home" standards compliance (EN DECREASE GF RV See Note)
Summary
HB145 amends Louisiana’s individual income tax law to expand and increase the construction code retrofitting deduction. The bill allows a taxpayer to claim a deduction equal to 50% of the cost of voluntarily retrofitting an existing residential structure that qualifies for the homestead exemption, so long as the work brings the home into compliance with the State Uniform Construction Code or the Insurance Institute for Business and Home Safety’s fortified home standards. The deduction applies only to owner-occupied residential property and excludes rental property.
The bill raises the maximum deduction from $5,000 to $10,000 per retrofitted residential structure and keeps the deduction tied to the taxable year in which the work is completed. It also repeals two existing statutory provisions related to the deduction and directs the Department of Revenue to adopt rules and verification requirements. The act applies to taxable periods beginning on or after January 1, 2026, and becomes effective on that date.
Impact
HB145 changes R.S. 47:293 by revising the definition and administration of the construction code retrofitting deduction, increasing the cap, and expanding eligible retrofit costs to include fortified home standards compliance. It affects individual income taxpayers who own and occupy qualifying homes, while leaving rental properties ineligible. The bill also requires the Department of Revenue to issue implementing rules and documentation standards, and it is expected to reduce state general fund revenue by increasing the value of the deduction claimed by eligible homeowners.
Sentiment
The bill appears to have been broadly supported and noncontroversial in the Legislature. It passed the House and Senate with unanimous recorded votes, including final passage votes of 90-0 in the House and 37-0 in the Senate, and the House later concurred in Senate amendments by a 98-0 vote. The vote pattern suggests strong bipartisan agreement on encouraging home hardening and retrofit activity.
Contention
No significant opposition is reflected in the available record, and there were no committee transcript snippets indicating debate. The main policy choice embedded in the bill is fiscal: increasing the deduction cap and broadening eligible costs will provide greater tax relief to homeowners but also reduce state revenue. Any potential concern would likely center on the cost to the treasury versus the benefit of incentivizing safer, code-compliant, and storm-resilient homes, but no recorded contention is shown in the provided materials.