Establishes an individual income tax deduction for certain property insurance policy premiums (OR -$69,900,000 GF RV See Note)
Summary
HB236 creates a new Louisiana individual income tax deduction for homeowners’ insurance policy premiums paid by a resident taxpayer. The deduction applies only to premiums paid for residential property located in Louisiana that is owned by the taxpayer, used as the taxpayer’s primary residence, and eligible for a homestead exemption. The deduction equals the actual amount of homeowners’ insurance premiums paid during the taxable year.
The bill also requires taxpayers claiming the deduction to keep records and supporting documentation and to provide that information to the Department of Revenue if requested when filing an individual income tax return. It authorizes the secretary of the Department of Revenue to adopt rules to administer and document the deduction. The deduction would apply to premiums paid on or after January 1, 2026, and the act would take effect on that same date.
Impact
HB236 would amend Louisiana’s income tax law by adding a new subtraction from tax table income in R.S. 47:293 and creating R.S. 47:297.6 to govern the homeowners’ insurance premium deduction. The practical effect is to reduce taxable income for eligible resident homeowners, potentially lowering state income tax liability for those who pay qualifying premiums on their primary residence. The bill also imposes recordkeeping obligations on taxpayers and gives the Department of Revenue rulemaking authority to implement and verify the deduction.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text and fiscal note caption, the measure appears to be framed as tax relief for homeowners facing insurance costs, suggesting a policy goal of offsetting rising property insurance premiums. The available record does not show any formal sentiment from legislators or stakeholders.
Contention
The main policy issue apparent from the bill is the fiscal cost of the deduction, reflected in the caption’s estimated negative general fund revenue impact. Potential points of contention would likely include whether the tax benefit is targeted enough, whether it should be limited to homesteaded primary residences, and whether the state should use income tax policy to address homeowners’ insurance affordability. Another likely issue is administrative verification, since taxpayers must retain documentation and the Department of Revenue may need to establish rules for substantiating claims.