The insurance industry in Florida has banded together to urge the Florida House of Representatives to repeal a bill that would rescind a tax credit on insurance companies' payrolls.
According to several trade associations, the Florida Senate has unanimously passed a measure, SB 1832, to get rid of the nearly 30-year-old credit for creating corporate job in the Sunshine State.
The American Insurance Association says the 14 percent tax credit has incentivized insurers to hire Florida employees.
"The insurance industry employs more than 18,000 Floridians who are an important part of the state's economy," says Ron Jackson, Southeast region vice president for AIA, in a statement. "The performance-driven credit incentivizes insurers to locate their operations in the Sunshine State."
In light of the fact the state struggles to recover following the Great Recession, the National Association of Mutual Insurance Companies calls the bill would be "taking one step forward…two steps back."
NAMIC says it was 120 P&C company members in Florida, employing more than 12,000 residents.
"Repealing this credit could influence a company's decision to either remain in or relocate to Florida," says Liz Reynolds, NAMIC's Southeast state affairs manager. She says at least one member decided to come to Florida due, in large part, the tax credit.
The Personal Insurance Federation of Florida says the legislation is intended to reduce the cost of driver's license and registration fees.
"Floridians deserve relief from the fee increases approved by the Legislature in 2009 during a budget crisis, but today lawmakers expect to have a budget surplus in excess of $3 billion that could be used in part to lower these fees," says PIFF Executive Director Michael Carlson.
Insurers would need to make up for the loss of the tax credit via higher rates, says PIFF, citing a study by Florida TaxWatch.
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