House Bill No. by Representative Henry proposes significant changes to the insurance premium tax structure in Louisiana. The bill establishes a flat rate of 1.6% on gross annual premiums for fire, marine, transportation, casualty, and surety insurance policies, replacing the previous tiered tax system that imposed a minimum annual tax of $185 for premiums of $6,000 or less, and $300 for each additional $10,000 in premiums. Additionally, the bill repeals several existing tax credits, including the insurance premium investment tax credit, the tax credit for retaliatory taxes paid by certain domestic insurers, and the Louisiana Capital Companies Tax Credit Program.

The bill also modifies the definition of "qualifying Louisiana investments" to apply to local tax exemptions while retaining the local tax exemption provisions. Insurers will be required to separately state premium taxes on their declaration pages, a requirement that previously applied only to surplus lines. The changes outlined in the bill will take effect for taxable periods beginning on or after January 1, 2026.

Statutes affected:
HB594 Original: 22:831(A)(1), 22:833(B)(2), 22:836(S, 22:842(A)(1), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:836(B)