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BATON ROUGE- At the request of Governor Kathleen Babineaux Blanco, the Louisiana Department of Revenue is preparing instructions to all individuals and businesses who are eligible to receive the Louisiana Citizens Assessment Tax Credit. Gov. Blanco pushed for the tax credit and it was approved by legislators during the recent special session.
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.
Louisiana income tax booklets will be mailed by the third week of January, but before taxpayers receive their booklets, they will receive a postcard, which shows taxpayers how to claim the Louisiana Citizens Insurance Credit on their income tax returns.
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 8 Louisiana Department of Revenue Regional Offices, including the Headquarters, or from your local Library. The form will be available after January 16, 2007. The form will also be available on the Louisiana Department of Revenue’s 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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