HB 723 Summary

• Provides nonrefundable tax credits against insurance premium taxes for private property and casualty insurers who write homeowners policies with wind and hail coverage in Alabama counties contiguous to the Gulf of Mexico and Mobile Bay.

• Credits equal 20 percent of insurance premium tax otherwise due in Zone 4 and 35 percent of insurance premium tax otherwise due in Zones 1, 2, and 3.

• Credit applies only to properties that are insured through the Alabama Insurance Underwriting Association at the time the private policy is written.

• Insurers may claim the credit only once per structure per taxable year, regardless of the number of policies written on that structure, and must provide information to the Department of Insurance demonstrating eligibility.

• Applies to all new policies issued with an effective date after the act's effective date, which is the first day of the third month following passage and approval by the Governor.