This bill amends RSA 408-F:13 to allow member insurers to utilize eligible assessment credits to offset their tax liabilities under RSA 400-A. The key changes include a reduction in the annual credit rate from 20% to 10% if the total eligible assessment credits exceed $10 million in a calendar year. Additionally, the bill specifies that member insurers cannot carry forward or back any unused portion of the tax credit but may amend their tax returns to claim such credits. The bill also clarifies that if a member insurer ceases doing business, all uncredited assessments can be credited against their tax liability for the year they stop operations.

The bill aims to limit unpredictable revenue losses for the state during years with high assessments from the New Hampshire Life and Health Insurance Guaranty Association (NHLHIGA), which protects policyholders in the event of an insurer's insolvency. While the bill does not directly reduce state revenue, it caps the potential reduction in General Fund revenue by adjusting the tax credit rate. The fiscal impact of these changes is indeterminable, as it depends on the future assessments levied by NHLHIGA, which are contingent upon the insolvency of insurance companies. The act will take effect 60 days after its passage.

Statutes affected:
Introduced: 408-F:13
HB1194 text: 408-F:13