Increases long-term care insurance credit from 20% to 35%.
TITLE OF BILL: An act to amend the tax law, in relation to increasing long-term care insurance credits
SUMMARY OF PROVISIONS: This bill amends the tax law to provide that residents of the state shall be entitled to a credit equal to thirtyfive percent of the premium paid for long-term care insurance.
Section 1 - amends subsection (aa) of section 606 of the Tax Law to provide that the credit allowable under the subsection shall be thirtyfive percent of the Premium paid during the taxable year for long-term care insurance.
Section 2 - provides that this act shall take effect immediately and shall apply to taxable years beginning on or after the first of January next succeeding the date on which it shall have become law.
PURPOSE AND JUSTIFICATION: Long term care is an ever-growing component of the cost of Medicaid in New York State. It is important to encourage citizens to make arrangements to cover the cost of nursing home care through long-term care insurance, both to protect their assets from the high cost of such care, and to control the cost to the state for such care. This bill will give greater encouragement for taxpayers to obtain and maintain long-term care insurance.
EXISTING LAW: Currently, twenty percent of the cost of long term care insurance is allowed as a credit against state income taxes.
PRIOR LEGISLATIVE HISTORY: 2011-2012: S.3772 -- INVESTIGATIONS 2010:S.3789/A.10598 -- INVESTIGATIONS/Ways & Means
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately, with provisions.
STATE OF NEW YORK ________________________________________________________________________ 2766 2013-2014 Regular Sessions IN SENATE January 23, 2013 ___________Introduced by Sens. RANZENHOFER, DeFRANCISCO, GOLDEN, LARKIN, MAZIARZ, O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to increasing long-term care insurance credits THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subsection (aa) of section 606 of the tax law, as amended by section 1 of part P of chapter 61 of the laws of 2005, is amended to read as follows: (1) Residents. A taxpayer shall be allowed a credit against the tax imposed by this article equal to
[twenty]THIRTY-FIVE percent of the premium paid during the taxable year for long-term care insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after the first of January next succeeding the date on which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05153-01-3