Vermont mulls premium tax break for new captives - Business Insurance
In addition, increasing the proportion of premium tax dollars used for regulation and promotion would ensure that the industry continues to get the support it needs, said Julie Boucher, a managing director at Marsh Management Services Inc. in Burlington, the state's biggest captive manager.
"Even during these tough economic times, Vermont recognizes the importance of the captive insurance industry to our state and the need to continue investing in our infrastructure and innovating in our industry," Gov. Douglas said.
The measure, which is expected to win passage, comes as captive formations have slowed in Vermont and other major U.S. domiciles.
Vermont—by far the largest U.S. captive domicile, with 557 captives at year-end 2008—licensed 16 new captives last year. That compares with 32 formations in 2007.
Mr. Provost attributed the slowdown to several factors, including the overall economic slump and concerns about an Internal Revenue Service rule, which was proposed