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The North Carolina General Assembly has passed captive bill SB 319, which includes a two-year premium tax holiday for captives redomesticated in the state.
The bill sponsored by the North Carolina Captive Insurance Association (NCCIA) has been sent to the Governor, who has 10 days to sign it or let it become law without his signature.
In addition to the tax exemption, the amended legislation proposes changes to the retaliatory tax applied to risk retention groups (RRG), reducing the maximum rate language in the statute to 1.85 per cent.
The bill also states that the commissioner may examine any RRG if he deems it prudent and reasonable, and that the examined RRG will pay for such examinations.
Tom Adams, NCCIA CEO, comments: “Our win in the Senate by a 46-0 margin on the third (final) reading is a major event for captives in North Carolina and the nation.
"We urge captives and captive managers to consider establishing an RRG here or if redomestication might be a better option for them."
This year, North Carolina has become the third-largest captive domicile in the US, behind Vermont and Utah. The state currently hosts 311 captive entities, up from 294 in 2022, with Utah holding 439 and Vermont licensing 659.
