Opinion Number

Dear Senator Heitmeier:

You have requested an opinion of the Attorney General regarding investments made by an insurance company (Insurco) in a Certified Louisiana capital company (CAPCO), and the impact that investment has on Insurco's state income tax liability. You specifically ask whether Insurco is entitled to a credit or offset against state income taxes, resulting from a credit against its premium tax liability because of its investment in a CAPCO.

As you are aware, R.S. 47:227 authorizes the offset of premium payments made by an insurance company against its state income taxes. It…