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Bill

SB 235

TAX/INCOME/PERSONAL: Establishes an individual income tax credit for payments made toward a homeowner's insurance policy premium. (1/1/26) (RE -$10,000,000 GF RV See Note)

2025 Regular Session Introduced by Royce Duplessis

Louisiana bill creates income tax credit for homeowner's insurance premiums, costing state $10M annually; failed passage 49-52 on final vote.

Read by title, returned to the calendar.
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WeVote Research Nonpartisan
Bill Summary · SB 235

Legislative bill overview

SB 235 would create an individual income tax credit allowing Louisiana taxpayers to deduct a portion of homeowner's insurance premiums paid from their state income tax liability. The credit would take effect January 1, 2026, and is estimated to reduce state general fund revenue by $10 million annually.

Why is this important

Homeowner's insurance costs have risen significantly across Louisiana, particularly following hurricane seasons and insurer exits from the market. This tax credit would provide direct financial relief to homeowners, though it represents a reduction in state tax revenue that must be balanced against other budget priorities. The bill addresses affordability concerns but shifts the cost burden to state finances during a period of insurance market instability.

Potential points of contention

  • Revenue impact timing: $10 million annual reduction to general fund revenue during a period when state budgets face competing demands for education, infrastructure, and healthcare
  • Equity concerns: Tax credits primarily benefit those with sufficient income tax liability to claim them; renters and low-income homeowners unable to claim benefits are excluded
  • Scope questions: The bill details are limited in the summary—unclear whether the credit applies to all homeowners, has income limits, or caps the credit amount, affecting its true cost and fairness
  • Market signal: Some argue subsidizing insurance costs may reduce pressure on policymakers to address underlying insurance market dysfunction and rate-setting practices

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

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