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Bill

HB 330

TAX CREDITS: Establishes an income tax credit for annual homeowners' insurance premiums paid in excess of a certain amount (OR -$250,000,000 GF RV See Note)

2025 Regular Session Introduced by Edmond Jordan

Louisiana income tax credit for homeowners' insurance premiums exceeding threshold; estimated $250M annual revenue loss.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 330

Legislative bill overview

HB 330 would create a state income tax credit for Louisiana homeowners who pay homeowners' insurance premiums exceeding a specified threshold amount. The bill is estimated to cost the state approximately $250 million in foregone general fund revenue annually, making it a significant fiscal commitment.

Why is this important

Homeowners' insurance costs have risen substantially across Louisiana, particularly in high-risk coastal areas, potentially straining household budgets. This tax credit would provide direct financial relief to homeowners by reducing their state tax liability based on insurance expenses, though the substantial revenue impact raises questions about funding priorities and state budget constraints.

Potential points of contention

  • Fiscal impact and sustainability: A $250 million annual cost is substantial; policymakers must determine if this is affordable given other state spending needs and whether the benefit justifies the revenue loss
  • Equity concerns: The credit may primarily benefit higher-income homeowners who can afford expensive properties and pay more in premiums, while lower-income renters or those unable to afford homeownership receive no benefit
  • Root cause vs. symptom treatment: Critics may argue the bill addresses insurance cost symptoms rather than underlying issues (insurance market instability, coastal risk mitigation, insurer profitability) that drive premium increases
  • Threshold ambiguity: The bill language doesn't specify the "certain amount" threshold, leaving uncertainty about who qualifies and the actual cost structure

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

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