Close Close
ThinkAdvisor

Life Health > Life Insurance

Louisiana Fails To Fund LTC Tax Credit

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Aug. 9, 5:11 p.m. – The American Council of Life Insurers, Washington, says the new Louisiana long-term care insurance tax credit is really a mirage.

Gov. Murphy Foster Jr., a Republican, signed a bill H.B. 55, that gives individuals the ability to subtract up to 10% of the cost of their annual LTC premiums from their total state income taxes.

The ACLI lobbied hard for the bill and welcomed Foster’s signature.

The final version of H.B. 55 enjoyed nearly unanimous support in the Louisiana Legislature: it passed 102-0 in the House and 37-0 in the Senate. The only lawmakers who didn’t vote for it were three representatives and two senators who happened to be absent during the votes.

But a clause at the end of the bill allows the tax credit to take effect only if lawmakers also create a special fund to finance the credit.

Louisiana still has a special legislative session coming up, but the regular session has adjourned, and it appears to be unlikely that lawmakers will find the time to set up the special fund, the ACLI says.

More information about the bill, including the text, is on the Web at http://www.legis.state.la.us/bills/byinst.asp?sessionid=02RS&billid=HB55