Senate Bill No. 235, introduced by Senator Duplessis, establishes a new individual income tax credit for taxpayers who pay premiums on homeowner's insurance policies. To qualify for this credit, the taxpayer's household income must not exceed 200% of the federal poverty guidelines. The credit amount is equal to the insurance premium paid, capped at $2,000. Additionally, the bill limits the total amount of credits granted in a calendar year to $10 million and stipulates that credits will be issued on a first-come, first-served basis. If the total credits applied for exceed the authorized amount, the excess will be treated as having been applied for on the first day of the following year. The bill also prohibits the granting of credits for taxable periods beginning on or after January 1, 2036.

Furthermore, the bill provides specific provisions for refundability and carry-forward of the credit. Residents with a federal adjusted gross income of $25,000 or less may receive a refund if their credit exceeds their tax liability, while those with incomes above this threshold can carry forward excess credits for up to five years. Taxpayers claiming the credit are required to maintain documentation verifying the insurance premium paid. The Secretary of the Department of Revenue is authorized to create rules to implement these provisions, with the law set to take effect on January 1, 2026.