New Jersey bill A2155 raises the insurance premium tax credit for insurers to 90% to counter retaliatory taxes from other states.
New Jersey bill A2155 amends the insurance premiums tax to increase the retaliatory tax credit for certain insurance companies from 15% to 90%. This change aims to reduce the tax liability imposed by other states on New Jersey-based insurers. The bill enhances New Jersey's competitiveness with states offering lower insurance premium tax rates or higher retaliatory tax credits. The increased credit may also discourage insurers from leaving New Jersey due to the regressive nature of retaliatory taxes. The new credit rate will apply starting with the 2024 tax return.
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