North Carolina’s captive premium tax holiday legislation delayed
North Carolina’s proposed legislation amendment that would temporarily exempt captive insurers redomesticating to the state from premium taxes - also known as the ‘premium tax holiday’ - has been delayed.
Specifically, HB 220 would have exempt existing foreign and alien captive insurers from premium taxes - if those captives are approved by the North Carolina Department of Insurance to redomesticate to North Carolina by December 31, 2020.
The bill was introduced on February 28 by the co-chairs of the House Insurance Committee, representatives Dana Bumgardner Gaston, Kevin Corbin and Mitchell Setzer.
The House Insurance Committee since removed the proposal around premium tax holidays, claiming they were not given adequate time to consider the proposal in full.
The bill was worked on by the NC Captive Insurance Association (NCCIA) and the NC Department of Insurance for the past 6-8 months to develop technical corrections and the centerpiece of the bill, the premium tax holiday.
“In thirty years of working with state legislatures and the congress I’ve learned that they move legislation on their institutional clock. They will get to the legislation whether it is later this year or more likely, during their short session in 2020,” said Thomas Adams, President & CEO, NCCIA.
Adams continued: “In the meantime we will continue to encourage redomestications with or without the premium tax holiday because North Carolina is the place to be for a captive to domicile.”