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Senate approves tax credit for low‑income homeowners' insurance premiums over dissent
Summary
SB235 creates an income‑based tax credit to help low‑income homeowners with policy premiums; the Senate adopted a $10 million annual cap and a 10‑year sunset, passing 21‑17 after heated floor debate.
The Senate on May 13 passed Senate Bill 235 to create an income‑targeted income tax credit to offset homeowners insurance premiums for low‑income households, but the measure drew divided votes.
Sponsor Senator DuPlessis described the measure as relief for residents struggling with high homeowner insurance costs. "It would allow for a tax credit up to $2,000 for individuals who are 200% below the poverty level," DuPlessis said on the floor. In committee she proposed a cap and a sunset; the adopted amendment set a $10,000,000 annual cap and a 10‑year sunset.
The bill's floor debate included questions about fiscal impact and who would ultimately bear tax shifts if local taxing authorities or millages cover shortfalls. Senators also clarified the cap: the sponsor said the $10 million cap is annual and the bill carries a 10‑year sunset. Opponents warned the measure could shift tax burdens or complicate local finance structures.
Senators voted 21 yeas and 17 nays; the clerk reported "21 yeas and 17 a's" in the roll call and the bill was recorded as passed. The sponsor acknowledged the bill includes a cap and sunset to limit the program's fiscal exposure.
If enacted, the measure would create a refundable or nonrefundable credit (depending on final text in the implementing act) to be claimed against individual income tax and subject to the $10 million annual cap; the sponsor said it is intended to provide targeted relief to households at or below the eligibility threshold. The bill will proceed to the House for consideration.
