Provides for a personal income tax credit for ten percent of the cost of long term health care insurance premiums

3 Multi-sponsors

• Michael J. Fitzpatrick
• Robert Oaks
• Dierdre Scozzafava

BILL NUMBER:A10529

Title of bill

An act to amend the tax law, in relation to authorizing a tax credit for individuals who purchase long term health insurance policies

Purpose or general idea of bill

Chapter 245 of the laws of 1986, is designed to encourage the development of various plans of which offer coverage for services provided in residential health care facilities and community-based setting.s. The purpose of this bill is to further encourage the development of these policies by providing tax credits to those persons, age fifty-five or older, who purchase state-sanctioned long-term health insurance policies."

Summary of specific provisions

Section 2 Amends section six hundred six of the tax law to add a new subsection (h-1) to read as follows: Credit for purchase of long term care health insurance. A taxpayer who is fifty-five years of age or older.shall be allowed a credit to be credited against the tax imposed by this article in an amount equal to ten percent of the annual premium paid on and after January first, two thousand seven for a contract issued in connection with a health insurance plan for long term care as provided for in section one thousand one hundred seventeen of the insurance law.

Justification

The fiscal limitations of many individuals renders them unable to meet the high costs of sound long-term health care. Together with escalating costs of health care, these limitations have created a great demand for public and private assistance. An avenue for meeting this demand without placing a severe strain on federal, state, and local budgets, is the development of health insurance policies which provide coverage for services in residential health care facilities and community-based settings. This bill will serve to further encourage the development and purchase of these policies by offering incentives- in the form of tax credits- to those persons who purchase them. In doing so, it will stimulate the incentive of insurance suppliers to introduce policies in accordance with the above mentioned state criteria.

Prior legislative history

2008: A.5687; Held for consideration in Ways and Means 2007: A.5687; Referred to Ways and Means 2006: A.3845; Referred to Ways and Means 2005: A.3845; Referred to Ways and Means 2004: A.2225; Held for consideration in Ways and Means

2003: A.2225; Referred to Ways and Means 2002: A.3106; Held for consideration in Ways and Means 2001: A.3106; Referred to Ways and Means 2000: A.2869; Held for consideration in Ways and Means 1999: A.2869; Referred to Ways and Means 1998: A.3371; Held for consideration in Ways and Means 1997: A.3371; Referred to Ways and Means 1996: A.3734; Held for consideration in Ways and Means 1995: A.3734; Referred to Ways and Means 1994: A 3234; Held for consideration in Ways and Means 1992: A.3690; Held for consideration in Ways and Means 1990: A.2306; Referred to Ways and Means 1989: A.2306; Referred to Ways and Means

Effective date

Immediately.