Raises tax credits for long-term care insurance from twenty percent to fifty percent; applies to the corporation tax, franchise tax on business corporations, personal income tax, and franchise tax on insurance corporations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3548
SPONSOR: Stern (MS) TITLE OF BILL:
An act to amend the tax law, in relation to raising tax credits for
long-term care insurance from twenty percent to fifty percent
PURPOSE OR GENERAL IDEA OF BILL:
This bill would raise tax credits for long-term care insurance from
twenty percent to fifty percent.
SUMMARY OF PROVISIONS:
Section 1: amends 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.
Section 2: amends 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.
Section 3: amends paragraph 1 of subsection (aa) of section 606 of the
tax law, as amended by section 1 of part E of chapter 59 of the laws of
2020.
Section 4: amends 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.
Section 5: sets the effective date.
JUSTIFICATION:
Those individuals who choose to plan for their long-term care needs by
purchasing long-term care insurance can find that the premiums are so
high as to be unaffordable, especially for those individuals on fixed
incomes. To defray some of the costs associated with obtaining and main-
taining long-term care insurance, this bill would increase the current
long-term care tax credits from 20% of the premiums paid to 50% of the
premiums paid by consumers during the tax year.
PRIOR LEGISLATIVE HISTORY:
2021-2022: A.6320 - referred to ways and means
2019-2020: A.2782 - referred to ways and means
2017-2018: A.1978 - referred to ways and means
2015-2016: A.4417 - referred to ways and means
2013-2014: A.2643 - referred to ways and means
2011-2012: A.2341 - referred to ways and means
2009-2010: A.6643 - referred to ways and means
2007-2008: A.4694 - referred to ways and means
2005-2006: A.5468 - referred to ways and means / S.3540 - referred to
investigations and government operations
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after the first of January of the year in which it shall
have become a law.
STATE OF NEW YORK
________________________________________________________________________
3548
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. STERN -- Multi-Sponsored by -- M. of A.
J. M. GIGLIO, RIVERA -- read once and referred to the Committee on
Ways and Means
AN ACT to amend the tax law, in relation to raising tax credits for
long-term care insurance from twenty percent to fifty percent
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 190 of the tax law, as amended by
2 section 102 of part A of chapter 59 of the laws of 2014, is amended to
3 read as follows:
4 1. General. A taxpayer shall be allowed a credit against the tax
5 imposed by this article equal to [twenty] fifty percent of the premium
6 paid during the taxable year for long-term care insurance. In order to
7 qualify for such credit, the taxpayer's premium payment must be for the
8 purchase of or for continuing coverage under a long-term care insurance
9 policy that qualifies for such credit pursuant to section one thousand
10 one hundred seventeen of the insurance law.
11 § 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law,
12 as added by section 17 of part A of chapter 59 of the laws of 2014, is
13 amended to read as follows:
14 (a) General. A taxpayer shall be allowed a credit against the tax
15 imposed by this article equal to [twenty] fifty percent of the premium
16 paid during the taxable year for long-term care insurance. In order to
17 qualify for such credit, the taxpayer's premium payment must be for the
18 purchase of or for continuing coverage under a long-term care insurance
19 policy that qualifies for such credit pursuant to section one thousand
20 one hundred seventeen of the insurance law.
21 § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as
22 amended by section 1 of part E of chapter 59 of the laws of 2020, is
23 amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02521-01-3
A. 3548 2
1 (1) Residents. There shall be allowed a credit against the tax imposed
2 by this article in an amount equal to [twenty] fifty percent of the
3 premiums paid during the taxable year for long-term care insurance. The
4 credit amount shall not exceed one thousand five hundred dollars and
5 shall be allowed only if the amount of New York adjusted gross income
6 required to be reported on the return is less than two hundred fifty
7 thousand dollars. In order to qualify for such credit, the taxpayer's
8 premium payment must be for the purchase of or for continuing coverage
9 under a long-term care insurance policy that qualifies for such credit
10 pursuant to section one thousand one hundred seventeen of the insurance
11 law. If the amount of the credit allowable under this subsection for any
12 taxable year shall exceed the taxpayer's tax for such year, the excess
13 may be carried over to the following year or years and may be deducted
14 from the taxpayer's tax for such year or years.
15 § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as
16 amended by section 21 of part B of chapter 58 of the laws of 2004, is
17 amended to read as follows:
18 (1) A taxpayer shall be allowed a credit against the tax imposed by
19 this article equal to [twenty] fifty percent of the premium paid during
20 the taxable year for long-term care insurance. In order to qualify for
21 such credit, the taxpayer's premium payment must be for the purchase of
22 or for continuing coverage under a long-term care insurance policy that
23 qualifies for such credit pursuant to section one thousand one hundred
24 seventeen of the insurance law.
25 § 5. This act shall take effect immediately and shall apply to taxa-
26 ble years beginning on or after the first of January of the year in
27 which it shall have become a law.
