In the final days of their legislative session, Louisiana House Republicans narrowly defeated a bill that would have provided relief to low-income homeowners struggling with rising home insurance costs. The vote was 48-53 against Senate Bill 235, introduced by New Orleans Democrat Sen. Royce Duplessis.
The bill proposed an income tax credit to offset homeowners’ insurance costs for households with incomes at or below 200% of the federal poverty line. For a single person, this threshold is $30,120 or less annually, and for a family of four, it’s $62,400 or less. The credit would have been capped at $2,000 or the amount of yearly homeowners’ insurance, whichever is lower. The original bill had a $10 million cap, but the House amended it to $1 million before its defeat.
Rep. Neil Riser, a Columbia Republican who carried the bill in the House, emphasized the struggles of Louisiana residents to afford homeowners’ insurance, drawing from his banking experience. “I see people that right now that you would think were very wealthy, and they’re behind. They’re trying to refinance at a higher note,” he said, later adding, “I’m afraid they’re going to lose their home.”
Rep. Mandie Landry, a New Orleans Democrat, shared her personal experience of having her homeowners’ insurance costs tripled. She noted that her constituents were facing similar challenges and were seeking relief. “It’s depressing because I don’t know what to say. I don’t have anything to say,” Landry said, highlighting the lack of action on homeowners’ insurance issues during the session.
Opponents, mostly Republicans, argued that the tax credit would lead insurance companies to raise rates further and unfairly burden other taxpayers. However, supporters like Riser and Landry pointed out that lawmakers had previously approved larger tax credits for corporations with less scrutiny.
“Do you think it’s fair to have the majority of people who are already suffering from high rates pay even higher rates to subsidize something like this?” asked Rep. Raymond Crews, a Shreveport Republican.
Landry responded to such concerns by saying, “I mean, I’m subsidizing the tax credits we did last year on corporations… I just find it a little preposterous that there is so much pushback over something so small that does help people try to stay in their homes.”
The defeat of the bill highlights the ongoing struggle to address rising homeowners’ insurance costs in Louisiana, particularly for low-income residents.
