House Bill No. 478, introduced by Representative Firmant, seeks to amend the existing law regarding insurance premium tax credits for retaliatory taxes paid by certain domestic insurers. The bill extends the termination date for these tax credits from December 31, 2029, to December 31, 2034. This change allows Louisiana domestic insurers that are authorized to write insurance in both Louisiana and at least one other state to continue receiving a refundable credit against their insurance premium taxes for retaliatory taxes paid to other states. The bill maintains the current limit on the total amount of credits that can be claimed in any fiscal year at $9 million, ensuring that if claims exceed this amount, refunds will be distributed on a pro rata basis.

The proposed legislation retains the existing framework that requires Louisiana to impose similar fees, taxes, or penalties on out-of-state insurers as those imposed by other states on Louisiana insurers. It also clarifies that the refundable credit is equal to the amount of retaliatory tax paid, which can be applied against the domestic insurer's state premium tax liability, with any excess refunded. The bill is set to take effect upon the governor's signature or after the lapse of time for gubernatorial action.

Statutes affected:
HB475 Original: 22:836(B)
HB475 Engrossed: 22:836(B)