Commissioner of Insurance Jim Donelon and Department of Revenue Deputy
Secretary Earl Millet
Announce Several Opportunities to Save Money this Tax Season
February 19, 2010
At a press conference in Baton Rouge today, Commissioner
of Insurance Jim Donelon and Department of Revenue Deputy Secretary
Earl Millet unveiled a radio spot aimed at making the public aware
of three opportunities to save money when filing their taxes this
year. The Department of Insurance and Department of Revenue are working
closely together to be sure that everyone who is eligible for state
tax savings are able to access the correct information and forms
to obtain those savings.
Two of the savings are obtainable via the Department of Revenue.
Another opportunity is for insurance premium discounts. Commissioner
Donelon is also reminding people of a federal tax deduction that
is possible for those who had damages from Hurricanes Gustav or Ike
in 2008. Commissioner Donelon kicked off a statewide speaking tour
and radio campaign on February 15 to let Louisiana citizens know
about these opportunities.
Donelon and Deputy Secretary Millet took the opportunity to discuss
four tax saving options for property owners this tax
Louisiana Citizens Assessment Tax Credit
Property owners are once again this year entitled to a state tax
rebate whether they file taxes or not, for the Louisiana Citizens
Property Insurance Corporation assessment charged on their 2009 policy.
Almost $59 million or 60% of the available money went unclaimed in
If you haven’t filed a claim form with the
Department of Revenue to recoup the amount paid, you can claim
the rebate due on your State
Tax Return due May 17, 2010. You can also claim assessments paid
with insurance premiums in prior years by filing an amended tax return
for the year in which the assessment was paid.
Fill out the Department of Revenue’s Louisiana Citizens Insurance
Tax Credit form for the year in which you paid the assessment. This
is found at the Department of Revenue’s home page and at the
Department of Insurance’s home page. Include with this form
the declaration page of your insurance policy that contains the assessment
amount. Also attach evidence that you paid your insurance premium
and mail these documents to the Department of Revenue.
There is a time limitation for claiming the assessment.
The deadline for assessments paid in 2005 and 2006 is the end of
The best plan is to obtain the rebate as soon as you pay the assessment,
or plan to claim the rebate with your state tax filing each year.
It’s not too late to secure the rebate on assessments you paid
with your previous years’ insurance premiums.
Louisiana State Uniform Construction Code Home Retrofit State Tax
Act 467 of the 2007 Regular Session allows a tax deduction for a
taxpayer to voluntarily retrofit an existing residential structure
to bring it into compliance with the State Uniform Construction Code.
This construction code home retrofitting deduction is an amount equal
to 50 percent of the cost paid or incurred for the retrofit on or
after January 1, 2007, less the value of any other state, municipal
or federally-sponsored financial incentives for the cost paid, limited
to $5000. The taxpayer must claim the homestead exemption for the
home being retrofitted and the home cannot be rental property.
The tax deduction can be no more than $5,000 per
retrofitted residential structure and is claimed on the tax return
for the year in which
the work is completed. Proof that the retrofit complies with the
State Uniform Construction Code (keep receipts for purchased items
installed and labor costs for retrofit – no inspection is required),
documentation of the cost of the project, and assurance that the
project was voluntary as defined by the law, must be retained by
the taxpayer. This became effective in the 2007 tax year.
A brochure on the state tax deduction is found at the Department
of Insurance web site at: http://www.ldi.state.la.us/consumers/misc_pubs/Residential_Property_Storm_Mitigation.pdf
Department of Revenue Bulletin No. 09-077, Construction Code Voluntary
Retrofitting Deduction information is found at:
Premium Discounts for State Uniform Construction Code Home Retrofit
or New Home Construction
Act 323 of the 2007 Regular Session provides insurance premium
discounts for homeowners when:
1. An owner builds or retrofits a one or two-family owner occupied
home or modular home to comply with the requirements of the State
Uniform Construction Code, and/or
2. An owner installs damage mitigation improvements or retrofits
their one or two-family owner occupied home or modular home utilizing
construction techniques demonstrated to reduce the amount of loss
from a windstorm or hurricane.
Each insurance company has established savings amounts allowed to
homeowners for the various storm mitigation building techniques that
are incorporated into a home as either a retrofit or new construction.
Homeowners should contact their insurance company or agent for these
details and any necessary forms.
Inspection and certification must be performed by a building code
enforcement officer, registered architect or engineer, or a registered
third-party provider authorized by the Louisiana State Uniform Construction
Code Council to perform building inspections. For a list of registered
third party providers, visit http://www.dps.louisiana.gov/lsuccc/
or call (225) 922-0817. The insurer may require one or more types
of documentation to demonstrate compliance with the State Uniform
Federal Hurricane Tax Deduction
Public Law (PL) 110-343 provides the Federal Hurricane Tax Deduction
for Uncompensated Damages from Hurricanes Ike and Gustav. This is
a much-needed tax-relief package for hurricane victims, allowing
them to claim hurricane damages on their taxes for 2008. This will
compensate for the additional expense many incurred due to named
storm deductibles homeowners faced with damages from Hurricanes Gustav
and Ike in September 2008.
tax relief package allows taxpayers to claim damage that exceeds
$100 on their federal taxes for 2008. If property
owners had uncompensated
damages from Hurricanes Ike or Gustav, they may still amend their
federal tax filing for 2008.
can refer to IRS Pub 547 for tax year 2008 to get the details on
the Federal Hurricane Tax Deduction:
is the radio spot script, which will air statewide from February
15 – March 7, 2010:
2010 Citizens, State Tax and Insurance Savings 60-Second Radio Spot
This is Insurance Commissioner Jim Donelon reminding Louisiana property
owners about three important savings for the upcoming tax season.
Property owners are eligible for a state rebate for the Louisiana
Citizens assessment on your 2009 insurance policy. Almost $59 million
or 60% of the available money went unclaimed in 2008. If you have
not yet submitted your rebate for 2009 or prior years, it is not
too late. For help, call us at 1-800-259-5300.
You can also apply for a state tax deduction for retrofitting your
home and an insurance premium discount for building or retrofitting
your home to comply with the Louisiana State Uniform Construction
Code, which will make your home more hurricane resistant.
Claim your 2009 Citizens State Rebate and apply for the State Uniform
Construction Code tax deduction when filing your State Tax Return.
Again, for assistance call us at 1-800-259-5300.