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, a taxpayer's household income must not exceed 200% of the federal poverty guidelines. The credit amount is equal to the premium paid, capped at $2,000, and is subject to a total limit of $10 million in credits granted per calendar year. The credits will be allocated on a first-come, first-served basis, and any excess applications beyond the annual limit will be treated as having been submitted on the first day of the following year. Additionally, the bill prohibits the granting of credits for taxable periods beginning on or after January 1, 2036.

The bill also includes provisions for refundability and carry-forward options for certain taxpayers. Specifically, individuals 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 for implementing these provisions, with the law set to take effect on January 1, 2026.