State Tax Advantages
New for 2008 is a one-time break that lets residents recoup part of their Louisiana homeowners insurance premium. Louisiana taxpayers can take a tax credit of 7 percent of the premium paid in 2008.
You'll first have to deduct the Louisiana Citizens Property Insurance assessment from the premium.
Here's how it works: A taxpayer who paid a $3,150 homeowner's premium on his or her primary residence looks at the policy and sees $150 of the premium is assessed by Citizens. That amount is deducted, and the 7 percent tax credit calculated on the remainder, or $3,000. So the taxpayer can claim a state income tax credit of $210 and reduce the amount of state income taxes owed.