Commissioner of Insurance Jim Donelon and Department of Revenue Deputy Secretary Earl Millet
Announce Several Opportunities to Save Money this Tax Season

Released: 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.

Commissioner Donelon and Deputy Secretary Millet took the opportunity to discuss four tax saving options for property owners this tax season:

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 2008.

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 December, 2010. 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 Deduction

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

The Department of Revenue Bulletin No. 09-077, Construction Code Voluntary Retrofitting Deduction information is found at:
http://www.rev.state.la.us/forms/lawspolicies/RIB09007.pdf

Insurance 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 Construction Code.

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.

This 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.

Consumers can refer to IRS Pub 547 for tax year 2008 to get the details on the Federal Hurricane Tax Deduction:
http://www.irs.gov/publications/p547/index.html

Below 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

http://www.ldi.state.la.us/media/2010CitizensTaxAndInsuranceSavings.mp3

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.

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