§836. Retaliatory taxes and fees; insurance premium tax credits for retaliatory taxes paid by certain domestic insurers

            A. When, by the laws of any other state, any taxes, fines, penalties, licenses, deposits, or other obligations or prohibitions, additional to or in excess of those imposed by the laws of this state upon insurers organized under the laws of other states, are imposed or would be imposed on insurers of this state, the same taxes, fines, penalties, licenses, deposits, and other obligations or prohibitions shall be imposed upon all insurers of the other state as long as the laws remain in force. Every insurer organized under the laws of any other state and admitted to transact business in this state shall pay the same fees to the commissioner of insurance of this state as the other state may require of any similar insurer incorporated by or organized under the laws of this state. Alien insurers shall pay the same fees as are imposed in the state where the deposit is made. Assessments by insurance guaranty associations or similar organizations are not considered in determining retaliatory taxation.

            B. A Louisiana domestic insurer that is authorized to write and does write insurance in Louisiana on an admitted basis and in at least one other state on an admitted basis as of July 1, 2023, shall be allowed a refundable credit, subject to the limitation set forth in Paragraph (6) of this Subsection. The refundable credit shall offset insurance premiums taxes due on the Annual Premium Tax Return due March first each year.

            (1) The amount of the credit shall be equal to the amount of any retaliatory tax paid to any other state as a result of the laws of the other state, for the period in which the retaliatory tax was paid.

            (2) The credit shall be applied against the domestic insurer's state premium tax liability as defined in R.S. 47:6016.1(B)(12), and any credit amount in excess of its premium tax liability shall be refunded to the domestic admitted insurer, subject to the limitations of Paragraph (6) of this Subsection.

            (3) Any unused amounts of the credit that are unused because the total amount of refundable credits for retaliatory tax paid claimed by all domestic admitted insurers exceeds the limitation set forth in Paragraph (6) of this Subsection may be carried forward for a period not to exceed ten years.

            (4) Any credits not previously claimed by a domestic admitted insurer against premium tax liability may also be transferred to a domestic admitted insurer within the same insurance holding company, subject to the following limitations:

            (a) A single transfer may involve one or more transferees.

            (b) Transferors and transferees shall submit to the Department of Insurance, in writing, a notification of any transfer of tax credits within thirty days after the transfer of the tax credits. The notice shall contain the amount of the remaining tax credit balance after transfer, all tax identification numbers for both transferor and transferee, the date of the transfer, the amount transferred, the price paid by the transferee to the transferor, and any other information required by the Department of Insurance. Failure to comply with the provisions of this Subparagraph will result in the disallowance of the refundable tax credit until the taxpayers are in full compliance.

            (c) The transfer of the credit shall not extend the time in which the credit may be used.

            (d) To the extent that the transferor did not have rights to claim or use the refundable credit at the time of the transfer, the Department of Insurance shall either disallow the credit claimed by the transferee or recapture the credit from the transferee.

            (5) The refundable credit for the payment of retaliatory taxes established pursuant to the provisions of this Subsection shall be administered by the commissioner of insurance.

            (a) Domestic admitted insurers who have paid retaliatory tax in the preceding year shall provide evidence of the payment of same by the date and in such form as prescribed by the commissioner by rule.

            (b) Domestic admitted insurers claiming a credit for retaliatory taxes paid that have provided evidence of the payment of retaliatory taxes shall be issued a refund by the commissioner for the amounts of retaliatory tax paid within sixty days of the filing of the evidence of the payment of retaliatory taxes for the applicable period.

            (c) The commissioner of insurance shall promulgate rules in accordance with the Administrative Procedure Act as are necessary to implement the provisions of this Subsection, subject to oversight by the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.

            (6) The maximum amount of credits authorized by this Subsection shall not exceed nine million dollars in any fiscal year.

            (7) In the event that there are credits claimed for retaliatory taxes paid by domestic admitted insurers that are in excess of nine million dollars in any fiscal year, the commissioner shall make refunds on a pro rata basis to the eligible domestic admitted insurers, based upon the proportion of the total amount of retaliatory tax paid by each domestic admitted insurer for the relevant time period.

            (8) A domestic admitted insurer which receives a credit for premium taxes paid shall certify to the commissioner that it will utilize the monies exclusively for Louisiana-specific purposes including:

            (a) Investments within Louisiana which are otherwise permissible investments for a domestic insurer.

            (b) Community activities or grants to Louisiana nonprofit enterprises or Louisiana charitable foundations.

            (c) Personnel expenses for employees based in Louisiana.

            (d) Ownership and leasehold expenses and improvements to or for its facilities and equipment utilized in the domestic insurer's Louisiana operations.

            (e) Any other Louisiana-specific purpose that is an otherwise lawful expenditure for a domestic insurer.

            (9) No credit authorized pursuant to the provisions of this Subsection shall be granted for retaliatory taxes based upon insurance premiums written in other states after December 31, 2029.

            Acts 1978, No. 125; Acts 1970, No. 84, §1; Acts 2001, No. 460, §1, eff. Jan. 1, 2002; Redesignated from R.S. 22:1079 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2023, No. 428, §1.