06/11/2009 08:45:47 AM EST
Ohio DOI vs The Feds?
All well and good, but for one (ahem) minor detail: as Bob points out, "it does not appear to say how that credit will be achieved. Nor does it indicate the IRS will go along with this scheme."
It's that last bit that's the real poser: how can state insurance law trump federal tax law?
While it's very nice that the Ohio Department of Insurance is willing to give the insurer a break, what makes the DOI think it can offer a federal tax break? This morning, I posed that question to the folks at the Ohio DOI, and was delighted to learn that this has the "blessing" of the IRS:
So it appears that the state is simply reiterating what the Feds have already specified. Good news, right?
© Copyright 2009 by Henry Stern. All rights reserved. Reprinted with permission. This blog originally appeared on InsureBlog. The InsureBlog is one of the Insurance Law Center’s Top 50 Insurance Blogs for 2009. The Top 50 Insurance Blogs may be found here.