PA 08-82—SB 391

Commerce Committee

Insurance and Real Estate Committee

AN ACT CONCERNING THE INSURANCE REINVESTMENT ACT

SUMMARY: This act redefines “insurance business,” for purposes of the Insurance Reinvestment Fund, by limiting it to insurance and other businesses providing insurance-related services with a North American Industry Classification code of 524113 through 524298. These codes include (1) insurance and reinsurance carriers; (2) insurance agencies and brokerages; and (3) other insurance-related activities, such as claims adjusting, third-party administration, and advisory and rate-making services. The redefinition limits the types of businesses eligible for investments through the Insurance Reinvestment Fund program.

EFFECTIVE DATE: October 1, 2008

BACKGROUND

Insurance Reinvestment Fund

PA 94-214 created the Insurance Reinvestment Act as a way to leverage private investment in insurance and other businesses providing insurance-related services. It does this by authorizing premium, corporate, and personal income tax credits for people and businesses that invest in these businesses through state-registered fund managers. Businesses receiving the investments must occupy facilities and create new jobs. Investors may claim a portion of the tax credits over a 10-year period according to a statutory schedule.

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