House Bill No. [insert number] proposes the establishment of an income tax credit for Louisiana residents who pay qualifying motor vehicle insurance premiums. The bill defines "qualifying motor vehicle insurance premiums" as those paid for insurance on vehicles owned by the taxpayer. The credit amount is determined as the lesser of either the amount of premiums paid exceeding $2,500 per vehicle (for up to two vehicles) or $5,000 per vehicle (for no more than two vehicles). Additionally, if the credit exceeds the taxpayer's total tax liability for the year, the unused portion can be carried forward for up to five subsequent taxable years, although the amount applied in any given year cannot exceed the taxes due for that year.

The bill also mandates that taxpayers claiming the credit maintain necessary records to verify their eligibility and the amount claimed, and they must provide these records to the Department of Revenue upon request. Furthermore, the bill stipulates that no credits can be claimed for taxable years beginning after December 31, 2031, and it will apply to taxable periods starting on or after January 1, 2026, with an effective date of January 1, 2026.