Tennessee approves captive bill giving new tax breaks
Reprints
Tennessee lawmakers Monday gave final approval to legislation that will provide a one-year premium tax exemption for captives that redomesticate in the state from non-U.S. domiciles.
The measure, H.B. 2228, passed by the Tennessee Senate on a 31-0 vote following earlier approval by the House, also clarifies that the assets of any individual cell captive cannot be seized as part of litigation against another cell.
The bill also would give most captives two additional weeks — to March 15 — compared to current law, to file their annual financial reports. Risk retention groups, though, would continue to have a March 1 deadline.
Passage of the legislation is another example of how Tennessee legislators are “continuing to keep the state's captive law at the cutting edge,” said Kevin Doherty, president of the Tennessee Captive Insurance Association and a partner at law firm Nelson Mullins Riley & Scarborough L.L.P. in Nashville.
Tennessee has grown rapidly as a captive domicile following a 2011 revamp of its captive statute. Last year, a record 57 captives — including seven from other domiciles — were licensed in the state, bringing Tennessee's captive count to 126.
Gov. Bill Haslam is expected to sign the measure.
Read Next
-
Captives market adds $15 million to North Carolina economy
North Carolina’s captive insurance company law generated more than $15 million in economic benefits in 2015, according to a study conducted by the state’s Department of Insurance and released Tuesday.
