Extends the sunset date of the tax credit for retaliatory taxes paid by certain domestic insurers (EN SEE FISC NOTE GF RV See Note)
Summary
HB 475 amends Louisiana law governing insurance premium tax credits for retaliatory taxes paid by certain domestic insurers. Under current law, domestic insurers may receive a credit against retaliatory taxes, but the credit is subject to a sunset date. This bill extends that termination date, allowing the credit to continue to apply to retaliatory taxes based on insurance premiums written in other states through December 31, 2031, instead of ending after December 31, 2029.
The measure is narrow in scope and does not create a new tax credit or change the underlying retaliatory tax framework; it simply lengthens the period during which the existing credit may be claimed. As a result, it affects R.S. 22:836(B)(9) and primarily impacts domestic insurers operating in Louisiana that do business across state lines and may incur retaliatory taxes in other jurisdictions. The bill became effective upon gubernatorial action or other constitutionally provided enactment procedures.
Impact
HB 475 extends the sunset date for the insurance premium tax credit for retaliatory taxes in R.S. 22:836(B)(9) from December 31, 2029 to December 31, 2031. This preserves a tax benefit for certain domestic insurers and may reduce their tax liability for retaliatory taxes paid on premiums written in other states. The bill does not alter the structure of retaliatory taxation itself, but it continues an existing credit for two additional years and may have a fiscal effect on the state general fund as reflected in the fiscal note.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 94-0, the Senate 38-0, and the House concurred in Senate amendments 93-0, indicating unanimous or near-unanimous legislative approval. The voting history suggests general agreement that extending the credit was appropriate.
Contention
There is little evidence of substantive opposition in the available record, and no committee transcript excerpts were provided showing debate. The only likely point of policy interest is the fiscal tradeoff: extending the credit may benefit domestic insurers while reducing state revenue relative to allowing the credit to expire. Any contention would therefore center on tax policy and the fiscal impact on the general fund, rather than on the mechanics of the bill itself.