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Louisiana Department of Revenue Announces New Instructions on How to File Refund Claim for the Louisiana Citizens Insurance Tax Credit

July 25, 2007

Baton Rouge, LA- In 2006, Governor Kathleen Blanco and the Louisiana Legislature enacted a bill, which authorized a refundable income tax credit for the Louisiana Citizens Property Insurance Corporation (Citizens) assessments that resulted from Hurricanes Katrina and Rita.

In the 2007 Regular Legislative Session, the law was amended, allowing any refund of Citizens assessments paid during 2007 and thereafter to be claimed by filing a Request for Refund of Louisiana Citizens Property Insurance Corporation Assessment form for individuals and business entities at the time of payment. Taxpayers required to file an income tax return have the option of claiming the credit for the Citizens assessment with their regular income tax return or on the Request for Refund of Louisiana Citizens Property Insurance Corporation Assessment form. The credit may not be claimed on both the income tax return and the Request for Refund form.

Individuals who are not required to file a Louisiana individual income tax return must file their claim for refund on the Request for Refund of Louisiana Citizens Property Insurance Corporation Assessment form. A copy of the homeowner’s or property’s insurance declaration page and any supplemental page that shows the charges for the Citizens assessment must be attached to the form.

"The amended law allows property holders an opportunity to file for their credit before the next individual income tax season begins, which makes it more convenient for many," states Secretary Cynthia Bridges.

The credit may only be claimed in the year paid regardless of the due date of the premium. Citizens assessments paid before January 1, 2007, can be claimed on the first income tax return with a due date in 2007. Assessments made before January 1, 2007, that were paid in periodic payments to the insurance company (e.g. monthly or quarterly), may be claimed as a credit on the 2006 tax return if the first periodic payment was made before January 1, 2007.

For more information about the Louisiana Citizens Insurance Income Tax Credit and for related forms, visit the Department of Revenue website at www.revenue.louisiana.gov.

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.

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For more information, please visit the Louisiana Citizens Insurance Tax Credit page.