$10K Tax Credit May Be on the Way for Louisiana Homeowners Who Stormproof Their Roofs

The Louisiana Senate has unanimously advanced a bill that would provide a state income tax credit of up to $10,000 for homeowners who install a fortified roof.

Senate Bill 28, sponsored by Sen. Kirk Talbot, R-River Ridge, is the latest in a series of insurance reforms and resiliency programs designed to mitigate Louisiana’s insurance crisis and slow rising rates.

The bill would complement the Louisiana Department of Insurance’s Fortify Homes Program, which began offering homeowner grants of up to $10,000 for fortified roof upgrades in 2023. Upgrading to a fortified roof that’s resistant to high winds and hail costs an average of $16,229 in Louisiana, according to an audit of the program.

If the bill passes, homeowners could combine the new tax credit with a Fortify Homes grant to cover the remaining construction costs of upgrading their roofs.

Resiliency measures may combat Louisiana’s insurance crisis

Louisiana home insurance rates have rapidly increased in recent years as destructive weather events become more frequent and severe.

Insurers have reported $1.6 billion in underwriting losses in Louisiana over the past decade. The active 2020 and 2021 hurricane seasons, combined with rising repair costs due to supply chain issues, tipped the state into an insurance crisis.

A dozen insurance companies became insolvent after Hurricanes Laura and Ida, and remaining insurers rapidly raised rates. The average cost of home insurance in Louisiana surged by 38% in 2024, surpassing $10,000 per year for a $300,000 single-family home, according to Insurify data.

Insurify’s data science team projects home insurance premiums will rise by an additional 27% in 2025.

Resiliency programs, like the proposed fortified roof tax credit, could help stabilize insurance rates by reducing weather-related damage and insured losses.

“[Fortified roofs] protect the home much better, should there be high winds,” said Buddy Parkhurst, licensed insurance agent at Insurify. “The fortifications help prevent major damage, therefore reducing the amount of claims and the cost of repairs.”

Installing a fortified roof reduces water intrusion from destructive storms by up to 95%, according to the Insurance Institute for Business & Home Safety (IBHS), a building safety research nonprofit. The Fortify Homes audit found that Louisiana homeowners save an average of 22% on their premiums by upgrading to a fortified roof.

“At the end of 2022, there were just over 300 [IBHS] Fortified-designated homes in the state. Yet, thanks in large part to the actions of the Louisiana Department of Insurance, the number of designations may reach 10,000 by the end of the year,” said Michael Newman, general counsel for the IBHS. “Additional incentives will only further encourage homeowners to take action, bolstering Louisiana’s ability to withstand future hurricanes.”

What’s next? Moving on to the Louisiana House

SB-28 still needs to clear the Louisiana House. If both chambers pass SB-28, the bill will move to Gov. Jeff Landry, who can sign it into law or veto it. The Louisiana Senate’s unanimous approval of the new tax credit bodes well for the bipartisan bill.

Louisiana homeowners who want to upgrade to a fortified roof should track the bill as it moves through the state Legislature. The current proposal caps the amount of fortified roof tax credits at $10 million in a single fiscal year, and the state will issue credits on a first-come, first-served basis.

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