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Bill

Bill

S 4427

Relates to a business tax credit for purchase of data breach insurance

2025 Regular Session Introduced by Jake Ashby

Bill S 4427 offers a tax credit to businesses that buy data breach insurance, promoting better cybersecurity practices, especially for small and medium enterprises.

REFERRED TO BUDGET AND REVENUE
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WeVote Research Nonpartisan
Bill Summary · S 4427

Summary of Bill S 4427

Bill Overview

  • Bill Number: S 4427
  • Title: Relates to a business tax credit for purchase of data breach insurance
  • Status: Referred to Budget and Revenue
  • Introduced On: February 04, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill S 4427 is to establish a tax credit for businesses that purchase data breach insurance. This initiative aims to encourage businesses to protect themselves against the financial risks associated with data breaches, thereby enhancing overall cybersecurity measures across various sectors.

Key Provisions

  • Tax Credit Implementation: The bill proposes a tax credit that businesses can claim when they purchase data breach insurance. The specifics of the credit amount and eligibility criteria are not detailed in the current version of the bill.
  • Focus on Cybersecurity: By incentivizing the acquisition of data breach insurance, the bill seeks to promote better cybersecurity practices among businesses, particularly small and medium-sized enterprises that may be more vulnerable to cyber threats.

Affected Parties

  • Businesses: The primary beneficiaries of this bill would be businesses that invest in data breach insurance. This includes a wide range of sectors, particularly those handling sensitive customer data, such as retail, healthcare, and finance.
  • Insurance Providers: Companies offering data breach insurance may see an increase in demand as businesses seek to qualify for the tax credit.

Procedural Aspects

  • Current Status: As of February 04, 2025, the bill has been referred to the Budget and Revenue Committee for further consideration. This step is crucial for evaluating the financial implications of the proposed tax credit.
  • Related Legislation: Bill S 4427 is related to several prior-session bills (S 4615, S 2821, S 2087, S 4871), indicating ongoing legislative interest in enhancing cybersecurity measures through financial incentives.

Conclusion

Bill S 4427 represents a proactive approach to bolster cybersecurity among businesses by providing a financial incentive for purchasing data breach insurance. As it moves through the legislative process, further details regarding the tax credit's specifics and its potential impact on businesses and the insurance market will be critical for stakeholders to understand.

Compiled from official sources — confirm details with the bill’s official record.

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