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HB 236

TAX/INCOME TAX: Establishes an individual income tax deduction for certain property insurance policy premiums (OR -$69,900,000 GF RV See Note)

2025 Regular Session Introduced by Brian Glorioso

Louisiana bill creates income tax deduction for property insurance premiums, costing $69.9M in state revenue to reduce tax burden on policyholders.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 236

Legislative bill overview

HB 236 would create a state income tax deduction for Louisiana residents who pay premiums on certain property insurance policies. This deduction would reduce the taxable income of eligible taxpayers, effectively lowering their state income tax liability. The bill carries an estimated revenue impact of $69.9 million in foregone general fund revenue.

Why is this important

Property insurance costs in Louisiana have risen significantly due to increased hurricane risk and insurer exits from the state market. By reducing the tax burden on those carrying property insurance, the bill aims to offset rising insurance costs for homeowners and property owners. However, this also represents a substantial reduction in state tax revenue that could otherwise fund education, healthcare, and infrastructure.

Potential points of contention

  • Revenue impact vs. affordability tradeoff: The $69.9 million cost is substantial for a state general fund and raises questions about what programs would be reduced or whether other taxes would increase to compensate
  • Equity concerns: Tax deductions primarily benefit higher-income earners who itemize deductions and pay more in premiums; lower-income Louisianans may see minimal benefit
  • Scope definition: The bill's reference to "certain property insurance policies" requires clarification—which policies qualify, and why exclude others? This could create administrative complexity and disputes

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

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