Louisiana House Rejects Tax Credit Bill for Low-Income Homeowners Facing Insurance Hikes

The Louisiana House recently rejected Senate Bill 235, which proposed a tax credit of up to $2,000 for low-income homeowners to help offset rising home insurance premiums. The bill targeted households earning at or below 200% of the federal poverty line and was defeated in a close 53–48 vote. This legislative effort aimed to provide modest financial relief amidst ongoing insurance cost increases driven by a shrinking number of providers and repeated weather-related disasters.

Senate Bill 235 was intended as a targeted, although limited, assistance measure rather than a comprehensive solution to Louisiana's persistent insurance affordability challenges. The bill's sponsor, Senator Royce Duplessis, highlighted the state's status among those with the highest home insurance premiums nationally and stressed the need for more robust regulatory oversight of the insurance market.

He also noted the legislature's previous reluctance to enact substantial homeowner relief, despite repeated rate increases and industry assurances of improvements that have not materialized. While Senator Duplessis currently has no plans to reintroduce this specific bill, he remains committed to advocating for stronger accountability measures to address rising insurance costs and market stability concerns in Louisiana. The discussion around SB 235 underscores ongoing regulatory and market pressures faced by state insurers and policymakers seeking effective solutions to protect vulnerable homeowners and ensure a sustainable insurance marketplace in the region.