LA HB127

Creates a Louisiana individual income tax deduction for contributions to "deductible savings accounts" used to pay homeowner's insurance deductibles or retrofit roofs to fortified building standards

Limits eligibility to resident taxpayers who own their primary residence in Louisiana and claim a homestead exemption on that property

Caps contribution limits at $2,000 for policyholders with deductibles of $1,000 or less, or twice the deductible amount up to $25,000 for higher deductibles

Requires distributions used for non-qualified purposes to be added back to taxable income; prohibits additional contributions in any year a tax-free distribution is taken

Effective January 1, 2026, with accounts required to be held at federally insured depository institutions with Louisiana offices