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House rejects homeowner insurance premium tax credit after heated floor debate
Summary
Lawmakers debated Senate Bill 235 for nearly three hours, including amendments that narrowed refundability and delayed the credit’s start date; the House rejected the amended bill 48-53.
The Louisiana House of Representatives debated Senate Bill 235, a proposal to create an individual income tax credit to offset homeowners insurance premiums for low- and moderate-income residents, but voted to reject the amended measure Thursday.
Supporters said the credit targets residents they described as most vulnerable to rising homeowners insurance costs; opponents said the credit risks crowding out broader reforms and could weaken incentives for insurers to lower rates. Representative Riser, who called the bill from the calendar, said the credit would attach a $2,000 cap per taxpayer starting in 2027 and include a decade-long sunset provision.
The bill drew a series of floor amendments. Representative Emerson offered a package that removed refundability for some recipients, set a $1 million annual cap on the state’s exposure, and pushed the effective date to Jan. 1, 2028. Emerson said the changes were intended to provide “guardrails” so the credit would not discourage insurers from reducing rates. The House adopted that amendment, 65-29.
Opponents said the amendment did not address the bill’s core concern and argued the state should pursue measures that lower insurance rates rather than subsidize premiums. Representative McCormick said removing refundability would “gut a big portion of the bill” for households with the least income and that the fiscal office’s estimates left uncertainty about how many homeowners would benefit.
Members also debated whether the bill would be applied on a come‑serve basis if state funds were exhausted, and whether the credit’s structure might lead to unequal geographic distribution of benefits. Representative Landry, from the coastal delegation, urged members to consider the policy’s practical effect on homeowners at risk of losing their homes because of high premiums.
After floor debate and roll-call voting, the clerk closed the machine with a final tally of 48 yeas and 53 nays; the bill failed to pass.
Votes at a glance: SB 235 (Sen. Duplessis) — failed, final vote 48-53.
Why it matters: The measure was one of several bills this session aimed at addressing the state’s homeowners insurance crisis. Lawmakers disagreed on whether direct financial credits or market and regulatory reforms are the better route. The adopted amendment narrowed the bill’s fiscal exposure but did not persuade a majority to enact the credit.
What’s next: Because the House rejected the bill, it will not become law in its current form. Supporters noted the bill could be revived with different caps, offsets, or in conference negotiations with the Senate; opponents said the Legislature should focus on insurer competition and other rate‑reduction strategies.
