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Louisiana Department of Revenue Clarifies Assessment Dates Eligible for the Louisiana Citizens Insurance Tax Credit

January 18, 2007

BATON ROUGE-The Louisiana Department of Revenue has prepared instructions to all individuals and businesses that are eligible to receive the Louisiana Citizens Property Insurance Assessment Tax Credit. Beginning with the 2006 tax year, residential and commercial property insurance policyholders will receive an income tax credit for the Louisiana Citizens Property Insurance Corporation regular and special assessments they paid because of Hurricanes Katrina and Rita. The refundable tax credit will offset $239 million in property insurance premium costs for policyholders in this state budget year alone. The refundable tax credit will be reimbursed if the policy holder paid prior to January 1, 2007. If the policy holder paid the assessment on or after January 1, 2007, they will be eligible to claim the tax credit on the 2007 tax year return.

The amount of the Louisiana Citizen’s assessment was shown as a separate item on the face of the premium notice (bill). Taxpayers may claim the credit on Line 9 of Schedule F of Form IT540 or Form IT-540B. Line 9 is labeled “Other Refundable Tax Credits.” Taxpayers will be required to attach a copy of their premium notice(s) to the return in order for the credit to be allowed.

Policyholders who are not required to file a state income tax return are eligible for a direct refund from the state. These policy holders may pick up Form R-540 INS, Request for Refund of Louisiana Citizens Property Insurance Corporation Assessment, from any of the eight Louisiana Department of Revenue Regional Offices, including the Headquarters, or from your local Library. The form will also be available on the Louisiana Department of Revenue’s website at

The Louisiana Department of Revenue’s mission is to administer the applicable tax laws of the state of Louisiana as well as regulations concerning alcohol, tobacco and charitable gaming.