Plain English Breakdown
The official text presents alternative dates (2025/2030 and 2026/2031) without indicating which set is final in the provided excerpt.
Tax Credit for Higher Home Insurance Costs
This law allows certain taxpayers to lower their state income tax by the amount they pay more on residential property insurance compared to what they paid in fire insurance during 2023.
What This Bill Does
- Creates a credit against personal income tax for qualified taxpayers.
- Applies to taxable years beginning on or after January 1, 2025 (or possibly 2026) and before January 1, 2030 (or possibly 2031).
- Calculates the credit by subtracting the fire insurance premium paid in 2023 from residential property insurance premiums paid during the taxable year.
- Includes specific goals, performance indicators, and data collection requirements required for new tax expenditures.
Who It Names or Affects
- Qualified taxpayers who pay for residential property insurance policies as defined by the bill.
- Taxpayers whose current residential property insurance premiums exceed their fire insurance premiums from the 2023 calendar year.
Terms To Know
- Credit
- An amount that reduces the total tax a person owes to the state.
- Base Year Premium
- The premium paid by the taxpayer for a fire insurance policy in the 2023 calendar year.
- Residential Property Insurance
- Insurance coverage defined within the bill, typically covering homes or living spaces.
Limits and Unknowns
- The exact start and end years for the credit are listed with alternative dates (2025/2030 versus 2026/2031) in the official text.
- The specific definition of a 'qualified taxpayer' is referenced but not detailed in the provided summary.