Bill > HB1194

This bill modifies how insurance companies can claim tax credits for assessments paid to the New Hampshire Life and Health Insurance Guaranty Association (NHLHIGA). Currently, member insurers can offset their tax liability by up to 20% of an assessment for each of the 5 consecutive calendar years following the assessment payment, specifically for life insurance, annuity, and disability income coverage accounts. The bill introduces two key changes: first, if the total eligible assessment credits in a calendar year exceed $10 million, the credit rate will be reduced from 20% to 10%; second, insurers are prohibited from carrying forward or carrying back unused tax credits but can amend their tax return to claim the credit. Additionally, if a member insurer ceases doing business, they can credit all uncredited assessments against their tax liability for the year they stop operating. The bill also maintains existing requirements that any refunds received from the association that were previously used as tax offsets must be paid back to the state. The primary purpose of these changes is to limit potentially large, unpredictable revenue losses in years with significant NHLHIGA assessments, which occur when an insurance company becomes insolvent and other member insurers must cover the claims.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=1956&inflect=2