senate Bill S2766

Increases long-term care insurance credit

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Increases long-term care insurance credit from 20% to 35%.

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Bill Details

Versions:
S2766
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3772
2009-2010: S3789

Sponsor Memo

BILL NUMBER:S2766

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: 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.

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

                                  2766

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            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

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