The House Resolution proposes the establishment of a special study group tasked with examining Louisiana's insurance premium tax system, including its associated credits, deductions, and exemptions. This initiative follows the significant tax reforms enacted during the 2024 Third Extraordinary Session of the Louisiana Legislature, which aimed to simplify the state's tax structure and broaden the tax base. However, the recent reforms did not address insurance premium taxes, which have become increasingly complex and substantial, amounting to approximately $1.5 billion annually. The study group aims to develop responsible policy recommendations to improve the insurance premium tax system for the benefit of taxpayers, policymakers, and the insurance industry.

The study group will consist of various members, including representatives from the House Committees on Insurance and Ways and Means, the Department of Insurance, the Department of Revenue, and several insurance associations. They will evaluate the current insurance premium tax structure and propose reforms by December 31, 2026. The group will be convened by a member of the House Committee on Ways and Means, and its legislative authority will conclude on January 1, 2027. The findings and recommendations will be reported to the House of Representatives and the David R. Poynter Legislative Research Library.