On a narrow eight to seven vote, the House Ways and Means Committee approved a Senate bill that would allow low-income homeowners to receive up to a $2,000 income tax credit to help them pay homeowner property insurance costs. New Orleans Senator Royce Duplessis is the author of the legislation.
“This is one of the very few instruments right now that I’m aware of this session that are trying to provide some direct relief to people suffering through high homeowners insurance premiums,” said Duplessis.
Under Duplessis’ bill, the state would not issue more than $10 million in tax credits each year, and the credits would be handed out on a first-come, first-serve basis. Homeowners who make less than 200% of the poverty level would be eligible. There was no way Chalmette Representative Michael Bayham would vote against this bill.
Bayham told Duplessis, “your bill is very popular in my district. In fact I had to change the voicemail at my office to let people know that I will be voting for your bill because we got so many calls over the weekend about it.”
The bill has already received Senate approval and SB 235 is expected to go before House Appropriations before floor debate.
Republicans on the panel opposed the measure because only households with less than 200% of the poverty level would be eligible. Sulphur Representative Larry Farnum questioned Duplessis about the income limit.
“What about the guy that makes $26,000? Do you think they need help?” said Farnum.
Duplessis responded, “They do, but if I did that, it would probably balloon the fiscal note, and it’s not about picking favorites. It’s just about trying to give help to those who, in my opinion, need it the most.”
According to the Greater New Orleans Housing Alliance, 193,000 households would be eligible for the tax credit. The group said the tax credit would help those homeowners who make about $12 an hour or retirees, who receive a little over $2,000 in social security and retirement benefits a month.
