§223.  Net income of life insurance companies

A.  Deductions allowed.  In the case of a life insurance company, the term "net income" means the gross income less:

(1)  The amount of interest received during the taxable year upon the obligations of a state, territory, or any political subdivision thereof, or the District of Columbia, or the federal government, or any of its possessions, or obligations of a corporation organized under an act of the Congress of the United States, if such corporation is an instrumentality of the United States;

(2)  An amount equal to four per centum (4%) of the mean of the reserve funds required by law and held at the beginning and end of the taxable year, except in the case of any such reserve fund which is computed at a lower interest assumption rate, the rate of three and three-fourths per centum (3 3/4%) shall be substituted for four per centum (4%).  Life insurance companies issuing policies covering life, health, and accident insurance combined in one policy issued on the weekly premium payment plan, continuing for life and not subject to cancellation, shall be allowed, in addition to the above, a deduction of three and three-fourths per centum (3 3/4%) of the mean of such reserve funds (not required by law) held at the beginning and end of the taxable year, as the collector finds to be necessary for the protection of the holders of such policies only;

(3)  The amount of dividends from a domestic or foreign corporation which is subject to taxation under this Chapter;

(4)  An amount equal to two per centum (2%) of any sums held at the end of the taxable year as a reserve for dividends (other than dividends payable during the year following the taxable year), the payment of which is deferred for a period of not less than five (5) years from the date of the policy contract;

(5)  Investment expenses paid during the taxable year; provided, that if any general expenses are in part assigned to or included in the investment expenses, the total deduction under this paragraph shall not exceed one-fourth of one per centum (1/4%) of the book value of the mean of the invested assets held at the beginning and end of the taxable year;

(6)  Taxes and other expenses paid during the taxable year exclusively upon or with respect to the real estate owned by the company, not including taxes assessed against local benefits of a kind tending to increase the value of the property assessed, and not including any amount paid out for new buildings, or for permanent improvements or betterments made to increase the value of any property.  The deduction allowed by this paragraph shall be allowed in the case of taxes imposed upon a shareholder of a company upon his interest as a shareholder, which are paid by the company without reimbursement from the shareholder, but in such cases no deduction shall be allowed the shareholder for the amount of such taxes;

(7)  A reasonable allowance as provided in R.S. 47:65 for the exhaustion, wear and tear of property, including a reasonable allowance for obsolescence;

(8)  All interest paid within the taxable year on its indebtedness, except on indebtedness incurred or continued to purchase or carry, or the proceeds of which were used to purchase or carry obligations, the interest upon which is wholly exempt from taxation under this Chapter; and

(9)  Net additions made within the taxable year to reserve funds, and sums paid within the taxable year on policy and annuity contracts.  

B.  Rental value of real estate.  The deduction under Sub-section A(6) or (7) of this Section on account of any real estate owned and occupied in whole or in part by a life insurance company, shall be limited to an amount which bears the same ratio to such deduction, computed without regard to this subsection, as the rental value of the space not so occupied bears to the rental value of the entire property.  

C.  Repealed by Acts 1968, No. 106, §10.