Monday, 11 June 2007
South Carolina Bill Would Create Tax Breaks and Hurricane Savings Accounts
The South Carolina House of Representatives approved a bill to give insurance companies an incentive to stay in the state while reducing premiums.
This measure would provide sales and income tax breaks for residents who improve their home’s structure to better withstand tropical storms — including storm shutters and other hurricane-resistant home improvements.
Residents will also be able to apply for government grants — up to $5,000 — to help pay for the improvements. And insurers would be required to reward policyholders who make storm-resistant upgrades with substantial discounts, reported the Associated Press.
The bill would also create hurricane savings accounts allowing homeowners to save tax-deductible money to help with insurance deductibles. It mirrors the popular Health Savings Account, where people can save tax-free money for their healthcare costs.
Governor Mark Sanford supports the bill and added tax incentives for the insurance companies, as well. Tax credits would be given to insurers who write full coverage policies for homeowners on the coast. To receive credits, cancellation notices must also be issued 60 days prior to the policy end date, rather than 30 days.
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