To make Delaware more attractive to carriers, Gov. Ruth Ann Minner earlier this month signed a law that reduces the tax on captive insurers.
House Bill 218 lowers the tax rate to 0.2% for direct written premiums and 0.1% for reinsurance premiums. The tax rate dropped July 1 from 0.7%.
The law also capped the tax bills on captive carriers:
*$125,000 on direct premiums
*$75,000 on reinsurance premiums
*$50,000 for a captive or subsidiary with 25 or more employees.
HB 218 is the first major change in the 1984 law, according to a summary of the bill.
Source: Delaware House
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