Establishes an income tax credit for annual homeowners' insurance premiums paid in excess of a certain amount (OR -$250,000,000 GF RV See Note)
Summary
HB 330 creates a new refundable-style income tax credit for Louisiana resident individual taxpayers who pay qualifying homeowners’ insurance premiums on residential property in the state for which they claim the homestead exemption. The credit is available only for the portion of annual premiums that exceeds $3,000, and the credit amount is capped at $5,000 per taxpayer per taxable year. If the credit is larger than the taxpayer’s income tax liability, any unused amount may be carried forward for up to five additional taxable years, but the credit used in any year cannot exceed the taxes due for that year.
The bill also requires taxpayers to keep records proving eligibility and the amount claimed, and it directs the Department of Revenue to adopt rules to administer the credit. The credit would apply to taxable periods beginning on or after January 1, 2026, and no credits could be earned for taxable years beginning after December 31, 2031. In effect, the bill adds a new provision to Louisiana’s individual income tax law, R.S. 47:297.26, aimed at offsetting high homeowners’ insurance costs for owner-occupied homes.
Impact
HB 330 would amend Louisiana’s individual income tax statutes by adding a new credit for homeowners’ insurance premiums, creating a targeted tax benefit for resident homeowners who claim the homestead exemption. It would affect both taxpayers and the Department of Revenue by establishing eligibility rules, documentation requirements, a five-year carryforward mechanism, and rulemaking authority for administration. The bill would not change insurance regulation directly, but it would reduce state income tax liability for qualifying taxpayers and could have a fiscal impact on general fund revenues.
Sentiment
Based on the bill text and caption, the measure appears to be framed as relief for homeowners facing rising insurance costs, suggesting generally supportive intent toward taxpayers affected by premium increases. No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, amendments, or formal support/opposition in the available materials. The bill’s fiscal note in the caption indicates a potentially significant revenue effect, which may be a point of concern even if the policy goal is broadly sympathetic.
Contention
The main likely point of contention is the cost to the state treasury, since the bill is associated with a large general fund revenue reduction in the caption. Another possible issue is equity: the credit is limited to resident individual taxpayers who claim the homestead exemption, so renters, landlords, and non-owner-occupied property owners would not benefit. The $3,000 threshold and $5,000 cap may also be debated as to whether they are set at the right level to target relief without overextending the credit.