Sunday, April 21, 2024

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NC Senate passes Bill to extend premium tax holiday for re-domestications

Hearings in North Carolina’s Senate have concluded with unanimous floor passage of SB 319, which, if passed, would extend the premium tax holiday for captives re-domesticating to the State until 2025.

The Insurance Revision Bill was originally introduced by the North Carolina Captive Insurance Association (NCCIA) last month, with the Bill heard and given favourable reports by the Senate Finance Committee on Monday, 24 April.

The Bill was then referred to the Senate Rules Committee which approved it on Wednesday 26, and then sent to the Senate Floor on Thursday where it passed both second and third readings.

Senator Todd Johnson was the Bill’s primary Senate sponsor.

“We are fortunate to have Senator Johnson as our primary sponsor,” said Tom Adams, NCCIA president.

“His knowledge of insurance and our products has been a key factor in the success of our legislation over the past two legislative sessions.

“Bills such as SB 319 are notoriously difficult to pass due to the loss of tax revenue to the State that is embodied in our bill. We look forward to it’s passage in this session of the General Assembly.”

In 2022, North Carolina introduced legislation that waived premium taxes for the year in which a captive re-domiciles. It also waives the next year’s premium taxes.

The waiver is designed to encourage captives to re-domicile to North Carolina, but the original legislation did not run for the full two years originally intended.

After Senate passage, the Bill has been messengered to the House where it will follow a similar path. Representative Chris Humphrey will be the primary sponsor in the House.

SB 319, if passed, will extend its application until 1 January, 2025.

NCCIA fundraising

Leon Rives, Jeremy Colombik and Alex Webb have been named as the initial board of directors of NC Captive PAC, the new political action committee of the Association, by Diana Hardy outgoing chair of NCCIA.

“The Board and I have charged the new board with the organisation and raising the initial corpus of the PAC,” Hardy said.

“As past Chairs of the association they are familiar with the membership, and I know from personal experience they’re not afraid to ask for a buck.”

The initial goal for the committee will be to raise around $15,000-$20,000 thousand over the next two years.