Committee adopts changes to insurance assessment credit: 7-year carry forward, $10M annual cap
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
The committee adopted a substantial rewrite to HB 11 94 that shortens the insurer carry-forward period to seven years, sets a $10 million annual statewide cap and changes annual recognition rules; the amendment and the committee's 'ought to pass' recommendation passed largely along bipartisan lines (16–1). Insurance department and industry representatives spoke in support of negotiated changes.
Representative Mary Murphy moved an amendment that effectively replaced major sections of HB 11 94 to add Department of Insurance definitions, reduce the carry-forward recognition period from 10 years to seven, cap the annual credit at $10,000,000 and set a recognition ceiling that allows roughly 14.28% recognition per calendar year (so credits are phased in over seven years if the cap is exceeded). "The insurance department has provided us with definitions to clarify and facilitate implementation," said Representative Murphy, summarizing the compromise language.
Deputy Insurance Commissioner Keith Nye explained the revised mechanics and the holdover language: anything under the annual $10 million cap would have a five-year carry-forward at 20% per year; only if the cap is breached would the seven-year, 14.28% schedule apply. Henry Dayu of the American Council of Life Insurers said the group needed time to review the rewrite but indicated it could be workable.
Representative Almi and other members pushed for clarity and careful review given the technical nature of the tax-credit recognition. After a show-of-hands and then a roll call, the amendment passed by a 16–1 margin; the committee then voted 'ought to pass as amended' by the same margin and recorded a majority and minority report arrangement (Representative Almi indicating concern and in some cases a minority report).
The committee instructed staff that if any material implementation issues arose in the Senate, adjustments could be made during the subsequent chamber's review. The amendment and recommendation now head toward the full House calendar and, if advanced, to the Senate.