Article published Jun 29, 2007
John Hill
jhillbr@gannett.com

BATON ROUGE - It was a busy, long day Thursday as the Legislature enacted sales tax breaks, insurance assistance and other major bills before the constitutionally mandated 6 p.m. end of the 2007 session.

Among the last-minute bills passed Thursday that will become law if Gov. Kathleen Blanco does not veto them:

SALES TAX HOLIDAYS: The first Friday and Saturday of the month of August, beginning this year, there will be no state sales taxes on items costing up to $2,500. It's a back-to-school benefit, but as Sen. Max Malone, R-Shreveport, pointed out, you could go buy a $2,400 TV at one store and go to another and buy a $2,400 sound system and not pay the 4 percent state sales tax.

The first Saturday and Sunday in the month of May, beginning next year, there will be no state sales tax on hurricane-preparedness items, such as portable lights, batteries, storm shutters and other specific items.

INVESTMENT TAX CREDIT: Insurance companies making capital investments in industrial or economic development projects will be able to recoup a portion of the taxes on the premiums they collect in Louisiana.

NURSING HOME MEDICATIONS: Nursing homes will be able to train persons to distribute medicines at nursing homes, freeing nurses for other duties.

INSURANCE: Individuals will get a tax credit of 7 percent of their household insurance premiums.

? Private insurance companies that agree to take a portion of policies now covered by the state's insurer of last resort, Citizens Property Insurance Corp., are eligible for cash incentives from a $100 million fund.

? Insurers cannot cancel a policy or change the deductible for a homeowner's policy that has been in effect for three years.

ENERGY TAX CREDIT: There will be a sales tax exemption on any solar or wind power equipment sold.

INHERITANCE, GIFT TAX: There will be a repeal on the state's gift tax and an elimination of the state inheritance tax.

HURRICANE RECOVERY CREDIT: There will be a tax credit for investments in hurricane- damaged areas, with a threshold investment of $500,000.

MOTION PICTURE TAX CREDITS: The Legislature voted to tighten the requirements of the 40 percent investment tax credit for infrastructure, stipulating that it applies only to production and post-production facilities.

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