Louisiana House Bill 145 (HB 145), introduced in the 2025 Regular Session, proposes to enhance the state’s construction code retrofitting income tax deduction. This bill is particularly relevant for professionals in the life safety and property protection industry, as it could influence homeowner demand for safety upgrades and retrofitting services.
Under current law, homeowners can claim a tax deduction for voluntarily retrofitting their residences to comply with the State Uniform Construction Code, with the deduction limited to 50% of the incurred costs or $5,000, whichever is less. HB 145 seeks to expand this deduction by including costs associated with bringing homes into compliance with the “fortified home” standards established by the Insurance Institute for Business and Home Safety. Additionally, the bill proposes to increase the maximum deduction amount from $5,000 to $10,000 per retrofitted residential structure, while maintaining the 50% cost limitation.
For life safety and property protection professionals, the passage of HB 145 could lead to increased homeowner interest in retrofitting projects aimed at enhancing structural resilience against natural disasters. This heightened demand may result in more opportunities for businesses specializing in safety assessments, code compliance upgrades, and installation of protective systems. Professionals should prepare to address inquiries related to the “fortified home” standards and consider offering services that align with these guidelines.
The proposed changes would apply to taxable periods beginning on or after January 1, 2026. Staying informed about the progress of HB 145 and understanding its implications will be crucial for professionals aiming to capitalize on the potential increase in retrofitting activities prompted by the enhanced tax incentives.