S3772-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Mar 3, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S3772-2011 Memo

BILL NUMBER:S3772

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
thirty-five 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
thirty-five 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:
2010: S.3789/A.10598 - Investigation/Ways & Means

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

S3772-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    3772

                         2011-2012 Regular Sessions

                              I N  SENATE

                                March 3, 2011
                                 ___________

  Introduced  by  Sens. RANZENHOFER, DeFRANCISCO, GOLDEN, JOHNSON, LARKIN,
    LAVALLE, MAZIARZ, O'MARA -- read twice and ordered printed,  and  when
    printed to be committed to the Committee on Investigations and Govern-
    ment 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.
                                                             LBD02588-01-1