California insurance companies now have new reasons to go green. A new law, AB 1011, which was authored by Insurance Commissioner candidate Assemblyman Dave Jones, was signed into force by Governor Arnold Schwarzenegger.

The new law will require the California Department of Insurance to gather information about insurance companies work toward green investments and reduction of greenhouse gasses as part of their community development investments. The information will then be shared with the public via the Department of Insurance website.

To sweeten the pot a bit, insurance companies that make demonstrable efforts go green may be eligible for a tax credit for “…qualified investments in low- and moderate-income urban and rural communities.”

Specifically, the bill states, “It is the intent of the Legislature to provide an incentive in the form of California tax credits to attract much needed additional private capital investments that would not otherwise be available to CDFIs without the benefit of such incentive. It is the expectation of the Legislature that CDFIs will leverage these new investment dollars for the direct benefit of economically disadvantaged communities and low-income people in California.”

Tags: california insurance, going green