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HB 331

TAX CREDITS: Establishes an income tax credit for certain amount of annual auto insurance premiums paid by a taxpayer (OR GF RV See Note)

2025 Regular Session Introduced by Edmond Jordan

Louisiana HB 331 would create a state income tax credit for annual auto insurance premiums, reducing taxpayer liability but decreasing state tax revenue.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 331

Legislative bill overview

HB 331 would create a Louisiana state income tax credit allowing taxpayers to deduct a portion of their annual auto insurance premiums from their state income taxes. The bill is currently in the early stages of the legislative process, having been referred to the Committee on Ways and Means for review.

Why is this important

Auto insurance is a mandatory expense for vehicle owners, and a tax credit could provide meaningful financial relief to Louisiana households, particularly lower and middle-income families who spend a larger percentage of income on insurance. However, the credit would reduce state tax revenue, requiring either budget adjustments elsewhere or analysis of the program's fiscal impact on state finances.

Potential points of contention

  • Fiscal cost: The state budget office would need to estimate how much tax revenue would be foregone; without offsetting revenue sources, this could pressure the state budget or require cuts to other programs
  • Equity questions: The benefit primarily flows to people who file state taxes and pay for auto insurance, potentially excluding lower-income individuals who don't earn enough to file or who use alternative transportation
  • Premium variation: Auto insurance costs vary dramatically by location, driving record, and vehicle type, raising questions about whether a blanket credit is the fairest approach or if it should be means-tested

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

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