Louisiana Advances Tax Credit for Fortified Roofs Amid Insurance Crisis

The Louisiana Senate has unanimously advanced Senate Bill 28, which proposes a state income tax credit of up to $10,000 for homeowners who install fortified roofs. This legislative move follows the state's ongoing efforts to address its insurance crisis triggered by frequent severe weather events and escalating insurance losses. The tax credit aims to complement the Louisiana Department of Insurance’s Fortify Homes Program that provides grants for fortified roof upgrades.

Fortified roofs are designed to resist high winds and hail, significantly reducing weather-related damage and resulting claims. The average cost of installing such a roof in Louisiana is around $16,229, but homeowners could combine the tax credit with existing grants to offset costs effectively. This could lead to greater widespread adoption of resilient construction methods among homeowners.

Louisiana has faced considerable challenges in its home insurance market, with insurers reporting $1.6 billion in underwriting losses over the past decade. Hurricanes Laura and Ida, as well as supply chain issues raising repair costs, have intensified this crisis, with insurance premiums surging by 38% in 2024 and projected to increase another 27% in 2025.

The implementation of fortified roofs has demonstrated a measurable impact on reducing insured losses. According to the Insurance Institute for Business & Home Safety (IBHS), fortified roofs reduce water intrusion during storms by up to 95%, with homeowners saving an average of 22% on premiums after upgrades. The number of IBHS Fortified-designated homes in Louisiana is expected to increase substantially, driven by state incentives and programs.

SB-28 is awaiting approval from the Louisiana House before it can be signed into law by the governor. The bill sets a $10 million cap on total tax credits per fiscal year, distributed on a first-come, first-served basis. If enacted, this incentive could be a significant step toward stabilizing Louisiana’s home insurance market by promoting more resilient housing infrastructure.