On Jul. 20, LOU INS proposed rule for insurance premium tax credits.
LOU INS reported in State Register notice to promulgate Regulation 130 Insurance Premium Tax Credits for Retaliatory Taxes Paid by Certain Domestic Insurers.
Added new chapter to the LOU Administrative Code, Title 37 Insurance,Part XIII Regulations, Chapter 199 Regulation 130, implement provisions of Act 428 (HB 513).
Act created insurance premium tax refundable credit for retaliatory taxes, #177615.
Applies to LOU domestic insurers authorized to write and do write insurance in LOU on admitted basis and in at least one other State on an admitted basis as of Jul. 1, 2023.
Refundable Tax Credits
Domestic admitted insurers who paid retaliatory tax based on premiums written in preceding year must provide evidence of retaliatory taxes paid to other States.
Within 60 days after receiving all applications of retaliatory credits, issue a refund.
Maximum refundable credits cannot exceed $9mn per fiscal year for all insurers claiming credits; if exceed, refunds will be made on pro rata basis to eligible insurers.
Based on proportion of total amount paid by each domestic insurer for preceding year.
Requests for tax credit must be submitted on Form 836 by Apr. 15th of each year.
Rule takes effect on Jan. 1, 2024, with the initial applications filed by Apr. 15, 2025.
Regulation sunsets Dec. 31, 2029; last applications filed Apr. 15, 2030, for year 2029.
Consultation
Comments on proposed rulemaking must be submitted by Aug. 10, 2024.
Oct. 2024 LOU INS State Register
On Oct. 20, 2024, LOU INS published adoption of Regulation 130 in the State Register.
Regulation shall take effect on Jan. 1, 2024; the initial applications for the refundable retaliatory tax credits must be filed by Apr. 15, 2025; regulation sunsets Dec. 31, 2029
Last applications for refundable tax credits must be filed by Apr. 15, 2030, for 2029.
Regulators
LOU INS
Entity Types
Ins
Reference
LOU SR, Vol. 50, No. 10, p. 1501, 10/20/2024; LOU SR Vol. 50 No. 7 p. 1072, 7/20/24; Reg 130; Form 836;
