News Summary
Louisiana lawmakers have progressed with tax incentives for homeowners, notably passing Senate Bill 28 for roof fortification credits, while rejecting Senate Bill 235 aimed at easing home insurance costs. As the legislative session nears its end, key proposals were debated, reflecting the ongoing concerns over rising insurance premiums and homeowner relief. Advocacy groups continue to push for more comprehensive solutions to address the homeowner insurance crisis affecting residents in the state.
Louisiana lawmakers have made notable progress in their efforts to provide tax incentives for homeowners while rejecting key bills intended to assist with rising home insurance costs. As the legislative session approaches its conclusion on June 12, 2025, lawmakers have focused on a variety of bills that address home insurance policies and tax credits.
One significant development is the advancement of Senate Bill 28, which was engrossed on June 9. This proposed legislation offers a tax credit for homeowners who install fortified roofs, aimed at increasing the resilience of homes against severe weather. The credit would cover the total installation costs for qualified expenses, up to $10,000 per homeowner. However, this tax incentive is limited to a total issuance of $10 million by the state. It is important to note that costs related to permits, inspections, and similar expenses are not included in the credit eligibility. Additionally, this bill applies exclusively to residential properties that have a homestead exemption and excludes newly built homes, condominiums, and mobile homes.
In contrast, the House rejected Senate Bill 235, which sought to create a tax credit for homeowners’ insurance premiums. The proposal, which failed to pass with a narrow vote of 49-52 on June 9, would have offered a tax credit equal to the amount of home insurance premium costs, capped at $2,000. The credit was intended for homeowners with incomes at or below 200% of the federal poverty level, approximately $25,000 for an individual based on current guidelines. This tax relief was planned to be distributed on a first-come, first-served basis, also with a $10 million annual cap.
Other legislative proposals, such as House Bill 331, which aims to provide tax credits for auto insurance premiums, have stalled since being referred to the House Committee on Ways and Means in April. This bill would have allowed tax credits for auto insurance premiums over $2,500 per vehicle, with a cap of $5,000 for up to two vehicles per household each year.
Furthermore, House Bill 356, which proposes that insurance policies be based on a stated value rather than current market value, has moved forward. This bill passed the House with a 79-20 vote and is now awaiting consideration in the Senate. Under this proposal, homeowners would need to submit a payoff statement from their mortgage lender and a certificate indicating the mortgage status when requesting a policy. Critics have raised concerns that using a stated value could result in homeowners being underinsured, especially in the event of a total loss.
Throughout the legislative session, tax credits for roof fortification have been one of the few successful initiatives, while broader issues concerning homeowner insurance have been left largely unaddressed. Notably, Louisiana’s average homeowner insurance premiums rank as the eighth highest in the nation, prompting ongoing discussions about the adequacy of the legislative responses to the insurance crisis facing residents.
Lawmakers have expressed disappointment over the failure of Senate Bill 235, as well as the limited impact of a weakened version of House Bill 356. Despite receiving bipartisan support, SB 235 was unable to secure enough support to pass, with opponents arguing that it could lead to increased insurance rates for other taxpayers.
Advocacy groups continue to urge for more effective and substantial solutions to alleviate the growing homeowners’ insurance crisis in Louisiana. With lawmakers and residents alike grappling with the challenges posed by escalating insurance rates, the debate surrounding meaningful changes to the state’s homeowner insurance landscape is anticipated to continue.
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