Coastal County Insurance Premium Tax Credit Worksheet


Credit incentive for licensed property & casualty insurers providing new full coverage policies which are effective on or after July 1st 2014, specifically including wind and hail coverage. Only on properties that as of the time of writing are or were insured for wind coverage through the Alabama Insurance Underwriting Association.

The insured property must be within Zones M1, M2, M3, M4, M5, B1, B2, B3, B4, B5 or Gulf Front.

The credit is nonrefundable.

The amount paid for premiums for which the credit is claimed cannot be excluded from gross income for the taxable year.

Documentation must include a policy listing that has been verified by the AIUA. Please e-mail a policy listing in excel format to the AIUA at CoastalPremiumTaxCredit@aiua.org. The listing should include the AIUA policy number, policyholder’s name, property address and policy period, insurance company policy number and premium. We do not need to know the premium charged by the AIUA. Once the AIUA has verified its information on the listing, it should be e-mailed to the AL Department of Insurance at premiumtax@insurance.alabama.gov.

At the time of writing, your producer should ascertain from the policyholder whether or not the coverage on the property is currently with the AIUA. Do not furnish the AIUA a list of every policy that you write in Mobile and Baldwin counties for them to research for you. The list that you furnish to the AIUA is for their verification of properties, that according to your records, were insured with the AIUA at the time of your writing.

Tax rate for property casualty insurers is 3.6% unless specifically reduced by the Alabama Insurance Office Facilities Credit or Alabama Real Property Investment Credit in accordance with AL code section 27-4A-3(3).

Company Name & NAIC Number:
Zone Insurer's premiums for policies which meet all of the above criteria Tax Rate Ordinary taxes due Zone credit reduction Tax credit total
M1, M2, M3,
B1, B2, B3 or
Gulf Front
   X  %   X 35%
M4, M5, B4,
B5
   X  %   X 20%
  Total Coastal credit:
                   

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