What's happening
This bill changes the long-term care insurance tax credit to cover the full premium amount, up to $1,000 per policy.
Why it matters
Significantly increases the value of the tax credit for long-term care insurance, making policies more affordable for individuals and families. this could encourage more people to purchase coverage, potentially reducing reliance on public assistance programs like Medicaid.
Caps the credit at $1,000 per policy but covers the entire premium amount up to that limit, rather than just a percentage. this especially benefits those with lower-priced policies or those who previously received only a partial credit.
May help address the underinsurance crisis among older adults by incentivizing proactive planning for long-term care needs, which can improve financial security and peace of mind for New Yorkers.
Could impact the long-term care insurance market by making it more attractive for insurers to offer competitive products, possibly leading to increased options and innovation within the state.
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Who cares
New York taxpayers paying long-term care insurance premiums
The bill would replace the credit equal to 20% of qualifying premiums with a credit equal to premiums paid, capped at $1,000 per policy.
Business taxpayers paying qualifying premiums
The bill would apply the same revised credit formula and per-policy cap to the business tax credits it amends.
Long-term care insurers
Premiums for their policies would remain eligible for the revised credits only if the coverage meets the existing approval requirements.
New York tax administrators
They would administer the revised premium-based credits and the new $1,000 per-policy limit.
Headline styles
Expand Long-Term Care Tax Credits
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Long-Term Care Tax Credit
In Senate Committee · Investigations And Government Operations · Sponsor Andrew J. Lanza
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7225
2019-2020 Regular Sessions
IN ASSEMBLY
April 15, 2019
Introduced by M. of A. CUSICK -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law and the insurance law, in relation to the tax credits for premiums paid for long-term care insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 190 of the tax law, as amended by section 102 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
1. General. A taxpayer shall be allowed a credit not to exceed one thousand dollars for each policy of insurance, against the tax imposed by this article equal to [twenty percent] the amount 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.
§ 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
(a) General. A taxpayer shall be allowed a credit, not to exceed one thousand dollars for each policy of insurance, against the tax imposed by this article equal to [twenty percent] the amount 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.
§ 3. 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:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06655-01-9
A. 7225 2
(1) Residents. A taxpayer shall be allowed a credit, not to exceed one thousand dollars for each policy of insurance, against the tax imposed by this article equal to [twenty percent] the amount 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.
§ 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as amended by section 21 of part B of chapter 58 of the laws of 2004, is amended to read as follows:
(1) A taxpayer shall be allowed a credit, not to exceed one thousand dollars for each policy of insurance, against the tax imposed by this article equal to [twenty percent] the amount 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.
§ 5. Paragraph 1 of subsection (g) of section 1117 of the insurance law, as amended by chapter 417 of the laws of 2001, is amended to read as follows:
(1) Except for certain group contracts described in paragraph four of this subsection, in order for premium payments for long-term care insurance to qualify for purposes of section one hundred ninety, subdivision [twenty-five-a] fourteen of section two hundred [ten] ten-B, subsection (aa) of section six hundred six[, subsection (k) of section one thousand four hundred fifty-six] and subsection (m) of section one thousand five hundred eleven of the tax law, the long-term care insurance must be approved by the superintendent pursuant to this subsection. Prior to approving any such insurance, the superintendent shall conclude that it meets minimum standards, including minimum loss ratio standards under this section or section three thousand two hundred twenty-nine of this chapter and is a qualified long-term care insurance contract as defined in section 7702B of the internal revenue code.
§ 6. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.