Thursday, January 4, 2007

Department of Revenue tells how to obtain Louisiana Citizens Insurance Tax Credit

The Louisiana Department of Revenue is preparing instructions to all individuals and businesses that are eligible to receive the Louisiana Citizens Assessment Tax Credit approved by legislators during the recent special session.

Beginning with the 2006 tax year, residential and commercial property insurance policyholders will receive an income tax credit for the Louisiana Citizens Property Insurance Corporation regular and special assessments they paid because of Hurricanes Katrina and Rita. The refundable tax credit will offset $239 million in property insurance premium costs for policyholders in this state budget year alone.

Louisiana income tax booklets will be mailed by the third week of January, but before taxpayers receive their booklets, they will receive a postcard, which shows taxpayers how to claim the Louisiana Citizens Insurance Credit on their income tax returns.

The amount of the Louisiana Citizen’s assessment was shown as a separate item on the face of the premium notice (bill). Taxpayers may claim the credit on Line 9 of Schedule F of Form IT540 or Form IT-540B. Line 9 is labeled “Other Refundable Tax Credits.” Taxpayers will be required to attach a copy of their premium notice(s) to the return in order for the credit to be allowed.