Senate committee advances tax credit to mirror fortified‑roof grant, adds $10 million cap

Senate Bill 28 by Sen. Talbot, which would create a $10,000 state tax credit for qualified fortified roofing work to mirror the existing fortified‑roof grant program, was advanced out of the Senate Committee on Revenue and Fiscal Affairs on April 22, 2025.

The committee adopted a package of Department of Revenue technical and policy amendments, including a $10,000,000 annual cap on total credits, a prohibition on stacking this credit with other state tax benefits or grants, and a first‑come, first‑served processing rule with a priority‑line procedure for late filers. Senator Luna moved to report the bill favorably as amended; there was no recorded opposition and the bill was reported favorably.

Sen. Talbot, the bill author, told the committee the credit was intended to replicate a successful grant program that sells out rapidly and to give homeowners who can front the cost an alternative to waiting for a lottery grant. “If you have the means to front the money upfront to get the roof, go ahead and get it, and we'll give you a tax credit that you can roll over for 3 years,” Talbot said, describing the bill's basic mechanics. The committee adopted an amendment (department package, identified in committee as amendments 593) that reduced the refundable period in the draft from five years to three years; some committee members said they might seek a floor amendment to restore five years.

Department of Revenue representative Luke Morris explained how the cap and first‑come, first‑served processing would work in practice: if the statutory cap is reached in a fiscal year, “they'll be placed in a priority line,” he said, meaning an application could be treated as applied for on the first business day of the subsequent year so the claimant does not permanently lose eligibility but may be delayed in when the credit can be claimed.

Committee discussion and the amendments also clarified administration and certification. Committee staff and a Department of Insurance representative explained that the existing fortified‑roof grant is administered through the Department of Insurance because applications must meet the fortified‑roof standard. The bill as amended leaves the grant program in place; the committee adopted language to make explicit that a property may not receive both the state grant and the new tax credit for the same work.

The Legislative Auditor's office told the committee it had surveyed household applicants to the existing program and found an average reduction in homeowners insurance premiums of 22% among respondents who reported savings after receiving a fortified‑roof certification. Ed Siler of the auditor's office described the finding to the committee as based on survey responses asking homeowners what their premium was before and after certification.

Clarifying details discussed in committee included: - Credit amount per eligible property: $10,000 (same dollar cap as the existing grant program); - Aggregate cap (committee amendment): $10,000,000 per fiscal year; - Refundable carryforward: amendment reduced the carryforward/rollover from 5 years to 3 years (amendment number 9); some senators signaled they may seek to change that on the floor; - Stacking prohibition: amended language prohibits a taxpayer from receiving other state tax benefits for which the taxpayer has received a credit under this section (amendment number 16); - Administration: applications will be certified through Department of Insurance processes and the IBHS (Insurance Institute for Business & Home Safety) certification is used for fortified‑roof verification; Department of Revenue handles tax credit processing.

The committee adopted the amendments in committee and then voted to report Senate Bill 28 favorably as amended.

The committee debate included questions about timing and equity (for example, whether inland or northern parishes would have similar access), administration during disaster‑response surges after major storms, and whether the three‑year carryforward could leave some homeowners unable to fully use the credit if the cap were exhausted in the year they file. Committee members asked staff to consider options before the bill reaches the floor, including restoring a five‑year carryforward or other administrative tweaks.

Votes at the committee were taken by voice; the committee chair recorded “seeing no opposition” when the bill was reported out.

Senate Bill 28 will next be placed on the Senate floor calendar as reported favorably by the committee.