Senate Bill S5229A

2015-2016 Legislative Session

Establishes tax credits for premiums paid for life insurance which is used for long term health care

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 11, 2016	print number 5229a
Jan 11, 2016	amend (t) and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
May 08, 2015	referred to investigations and government operations

Bill Amendments

Original

A (Active)

co-Sponsors

2015-S5229 - Details

See Assembly Version of this Bill:: A7603
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§190, 210-B, 606 & 1511, Tax L; amd §1117, Ins L
Versions Introduced in 2017-2018 Legislative Session:: S3566, A5591

2015-S5229 - Summary

Establishes tax credits for premiums paid for life insurance which is used for long term health care; enhances tax credits for long term health care insurance premiums.

2015-S5229 - Sponsor Memo

                                BILL NUMBER:S5229

TITLE OF BILL:  An act to amend the tax law, in relation to credits
for premiums paid for long-term care insurance policies

PURPOSE OR GENERAL IDEA OF BILL:  The purpose of this bill is to
expand upon the provisions of Chapter 563 of the Laws of 2010 and
Chapter 465 of the Laws of 2014, which expanded the types of end of
life care that can be financed by an accelerated death benefit rider
attached to a life insurance policy.  Under these new laws, persons
who have resided in a nursing home for three months or more or require
end of life or palliative care for three months or more at a
residential, health care facility, receive home care services or
hospice care and such services are expected to be needed until death
can now be financed by a life insurance policy rider. The bill
provides additional tax credit inducements to encourage individuals to
purchase long term care insurance or these new life insurance policy
riders when they are younger. This enhanced tax credit is available
for the first four years of the policy's effectiveness.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Tax Law section 190 to increase the tax credit for
purchasing long term care insurance or a policy rider to a life
insurance policy that provides for long term care-like coverages. The
tax credit increases from 20% to 40% if the insured is less than 40

years old (for the first four policy years). The bill provides further
a gradual decrease in the tax credit based on age (but which is still
higher than the current law that establishes the tax credit at 20
percent). For persons less than 50 years old, the tax credit is 30%,
for those older than 50, but less than 55 years old, the tax credit is
25%, and for those 55 years old or older, the tax credit remains the
same as it is now at 20%. The enhanced tax credit shall be applicable
for the first four policy years, and thereafter, the rate of the tax
credit will remain the same as is the current rate of 20%.

The reason for the increase in the tax credit for those under the age
of 40, 50, and 55 years of age is to encourage younger persons to
purchase long term care insurance or policy riders to life insurance
policies when the premium rate is cheaper. Over 80% of the New York
Partnership for Long Term Care Insurance policies are purchased by
persons over the age of 55. For persons over the age of 60 years, the
average cost of a Partnership for Long Term Care insurance policy is
between $3,000 and $6,000, for those under the age of 55, it is
approximately $2,300. Hence, even with the higher percentage tax
credit for the purchase of LTC Insurance, for younger persons the tax
subsidy will be less than it is for the average person over the age of
60. The goal of this bill is to encourage younger individuals to
purchase this kind of coverage. For younger persons, the combination
of relatively low rates, plus the enhanced tax credit should help to
encourage more young people to purchase such long term care coverages.
In addition, the enhanced subsidy is in effect for the first four
policy years only, because studies indicate that most purchasers of
LTC insurance retain such coverages over the long term if such
policies remain in effect for four or more years. At that point, the
insureds have a vested interest in keeping such policies over the long
term.


Section 2: Amends Tax Law section 210-B to add the new tax credit
incentive for the computation of the corporate franchise tax.

Section 3: Amends Tax Law section 606 to add the long term care
insurance and LTC life insurance policy rider tax credit for personnel
income tax calculations.

Section 4: Amends Tax Law section 1511 to add the LTC tax credit for
insurance corporation taxes.

JUSTIFICATION:  As the general population becomes older, more and more
individuals are looking for affordable ways to finance their nursing
home and long term care needs. While there are available policies that
provide payment for long term care, more products should be authorized
under New York law so that consumers will have more types of insurance
coverage available to meet their specific needs or the needs of their
family.

In addition, encouraging more individuals to finance their own long
term care, will help to curtail future expenditures from the State's
Medicaid program, which currently finances the lion's share of the
provision of long term care in this State. This bill is a further
extension of new laws such as Chapter. 563 of the Laws of 2010 and
Chapter 465 of the Laws of 2014 which are geared towards encouraging
individuals to finance their own long term care and nursing home care
as we all get older via life insurance policy riders.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS:  It is the intent of this bill encourage the
increased us: of Long Term Care insurance and policy riders to life
insurance policies for the use as a financing mechanism to finance end
of life care. This, in the end, should help to decrease State Medicaid
expenditures.

EFFECTIVE DATE:  This act shall take effect on April, 1st of the year
next succeeding its date of enactment.

2015-S5229 - Bill Text download pdf

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

                                  5229

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               May 8, 2015
                               ___________

Introduced  by  Sens.  KLEIN, VALESKY -- 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 credits for premiums paid
  for long-term care insurance policies

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, 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  against  the  tax
imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
AGES  of  the  premium  paid  during the taxable year for long-term care
insurance OR A LIFE INSURANCE POLICY OR POLICY RIDER PURSUANT TO SUBPAR-
AGRAPH (C), (D), (E) OR (F)  OF  PARAGRAPH  ONE  OF  SUBSECTION  (A)  OF
SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
FOUR POLICY YEARS;
  (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
THE FIRST FOUR POLICY YEARS; OR
  (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
POLICY FOR FIVE YEARS OR MORE.
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09827-01-5

S. 5229                             2

  S 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 against the tax
imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
AGES of the premium paid during the  taxable  year  for  long-term  care
insurance OR A LIFE INSURANCE POLICY OR POLICY RIDER PURSUANT TO SUBPAR-
AGRAPH  (C),  (D),  (E)  OR  (F)  OF  PARAGRAPH ONE OF SUBSECTION (A) OF
SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (I) FORTY PERCENT IF THE INSURED IS LESS THAN FORTY YEARS  OF  AGE  AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (II)  THIRTY  PERCENT  IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE,
BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST
FOUR POLICY YEARS;
  (III) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
THE FIRST FOUR POLICY YEARS; OR
  (IV)  TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
POLICY FOR FIVE YEARS OR MORE.
  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.
  S 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:
  (1) Residents. A taxpayer shall be allowed a credit  against  the  tax
imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
AGES  of  the  premium  paid  during the taxable year for long-term care
insurance OR A LIFE INSURANCE POLICY OR POLICY RIDER PURSUANT TO SUBPAR-
AGRAPH (C), (D), (E) OR (F)  OF  PARAGRAPH  ONE  OF  SUBSECTION  (A)  OF
SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
FOUR POLICY YEARS;
  (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
THE FIRST FOUR POLICY YEARS; OR
  (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
POLICY FOR FIVE YEARS OR MORE.
  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 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:

S. 5229                             3

  (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
this  article equal to [twenty percent] THE FOLLOWING PERCENTAGES of the
premium paid during the taxable year for long-term care insurance  OR  A
LIFE INSURANCE POLICY OR POLICY RIDER PURSUANT TO SUBPARAGRAPH (C), (D),
(E)  OR  (F)  OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND
ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (A) FORTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS  OF  AGE  AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
FORTY  OR  MORE  YEARS  OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST
FOUR POLICY YEARS;
  (C) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN  FIFTY-FIVE  YEARS
OF  AGE,  BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR
THE FIRST FOUR POLICY YEARS; OR
  (D) TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS  OF  AGE
AT  THE  END  OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO HAVE HAD A
POLICY FOR FIVE YEARS OR MORE.
  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.
  S  5. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.

co-Sponsors

2015-S5229A (ACTIVE) - Details

See Assembly Version of this Bill:: A7603
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§190, 210-B, 606 & 1511, Tax L; amd §1117, Ins L
Versions Introduced in 2017-2018 Legislative Session:: S3566, A5591

2015-S5229A (ACTIVE) - Summary

Establishes tax credits for premiums paid for life insurance which is used for long term health care; enhances tax credits for long term health care insurance premiums.

2015-S5229A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5229A

 TITLE OF BILL :

An act to amend the tax law and the insurance law, in relation to
credits for premiums paid for long-term care insurance policies

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to expand upon the provisions of Chapter
563 of the Laws of 2010 and Chapter 465 of the Laws of 2014, which
expanded the types of end of life care that can be financed by an
accelerated death benefit rider attached to a life insurance policy.
Under these new laws, persons who have resided in a nursing home for
three months or more or require end of life or palliative care for
three months or more at a residential, health care facility, receive
home care services or hospice care and such services are expected to
be needed until death can now be financed by a life insurance policy
rider. The bill provides additional tax credit inducements to
encourage individuals to purchase long term care insurance or these
new life insurance policy riders when they are younger. This enhanced
tax credit is available for the first four years of the policy's
effectiveness.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1: Amends Tax Law section 190 to increase the tax credit for
purchasing long term care insurance or a policy rider to a life
insurance policy that provides for long term care-like coverages. The
tax credit increases from 20% to 40% if the insured is less than 40
years old (for the first four policy years). The bill provides further
a gradual decrease in the tax credit based on age (but which is still
higher than the current law that establishes the tax credit at 20
percent). For persons less than 50 years old, the tax credit is 30%,
for those older than 50, but less than 55 years old, the tax credit is
25%, and for those 55 years old or older, the tax credit remains the
same as it is now at 20%. The enhanced tax credit shall be applicable
for the first four policy years, and thereafter, the rate of the tax
credit will remain the same as is the current rate of 20%.

The reason for the increase in the tax credit for those under the age
of 40, 50, and 55 years of age is to encourage younger persons to
purchase long term care insurance or policy riders to life insurance
policies when the premium rate is cheaper. Over 80% of the New York
Partnership for Long Term Care Insurance policies are purchased by
persons over the age of.55. For persons over the age of 60 years, the
average cost of a Partnership for Long Term Care insurance policy is
between $3,000 and $6,000, for those under the age of 55, it is
approximately $2,300.

 EFFECTIVE DATE :
This act shall take effect on April, 1st of the year next succeeding
its date of enactment.

2015-S5229A (ACTIVE) - Bill Text download pdf

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

                                 5229--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               May 8, 2015
                               ___________

Introduced  by  Sens.  KLEIN,  AVELLA, VALESKY -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations -- recommitted to the  Committee  on
  Investigations  and  Government  Operations  in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT to amend the tax law and the insurance law, in relation to cred-
  its for premiums paid for long-term care insurance policies

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, 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  against  the  tax
imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
AGES  of  the  premium  paid  during the taxable year for long-term care
insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF  SUBSECTION
(A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
FOUR POLICY YEARS;
  (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
THE FIRST FOUR POLICY YEARS; OR
  (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
POLICY FOR FIVE YEARS OR MORE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09827-02-6

S. 5229--A                          2

  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.
  S  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 against the tax
imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
AGES of the premium paid during the  taxable  year  for  long-term  care
insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
ANT  TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION
(A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (I) FORTY PERCENT IF THE INSURED IS LESS THAN FORTY YEARS  OF  AGE  AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (II)  THIRTY  PERCENT  IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE,
BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST
FOUR POLICY YEARS;
  (III) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
THE FIRST FOUR POLICY YEARS; OR
  (IV)  TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
POLICY FOR FIVE YEARS OR MORE.
  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.
  S 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:
  (1) Residents. A taxpayer shall be allowed a credit  against  the  tax
imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
AGES  of  the  premium  paid  during the taxable year for long-term care
insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF  SUBSECTION
(A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
FOUR POLICY YEARS;
  (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
THE FIRST FOUR POLICY YEARS; OR
  (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
POLICY FOR FIVE YEARS OR MORE.
  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. 5229--A                          3

  S 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 against the tax imposed by
this article equal to [twenty percent] THE FOLLOWING PERCENTAGES of  the
premium paid during the taxable year for long-term care insurance OR FOR
A  POLICY  RIDER  TO A LIFE INSURANCE POLICY ISSUED PURSUANT TO SUBPARA-
GRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION
ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
  (A) FORTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS  OF  AGE  AT
THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
  (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
FORTY  OR  MORE  YEARS  OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST
FOUR POLICY YEARS;
  (C) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN  FIFTY-FIVE  YEARS
OF  AGE,  BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR
THE FIRST FOUR POLICY YEARS; OR
  (D) TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS  OF  AGE
AT  THE  END  OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO HAVE HAD A
POLICY FOR FIVE YEARS OR MORE.
  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.
  S  5.  Paragraphs  1  and  2  of subsection (g) of section 1117 of the
insurance law, paragraph 1 as amended by chapter  417  of  the  laws  of
2001,  paragraph  2  as amended by section 12 of part E of chapter 63 of
the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended
by chapter 311 of the laws of 2002, are 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 insur-
ance,  OR  FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSUANT
TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION  (A)
OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS ARTICLE, 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 elev-
en of the tax law, the long-term care insurance  OR  SUCH  POLICY  RIDER
must  be  approved  by  the  superintendent pursuant to this subsection.
Prior to approving any such insurance OR POLICY RIDER,  the  superinten-
dent  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.
  (2)  (A)  No  insurer,  agent, broker, person, business or corporation
doing business in or into this state shall in any manner  state,  adver-
tise  or claim that a long-term care insurance policy, OR A POLICY RIDER
TO A LIFE INSURANCE POLICY ISSUED PURSUANT  TO  SUBPARAGRAPH  (C),  (D),
(E),  OR  (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND
ONE HUNDRED THIRTEEN OF THIS ARTICLE,  qualifies  for  purposes  of  the
above-referenced provisions of the tax law unless either: (i) the super-
intendent has issued a letter or other written instrument to the insurer
stating  that  the policy OR POLICY RIDER has been determined to qualify
under this subsection, or (ii) the  policy  OR  POLICY  RIDER  qualifies

S. 5229--A                          4

under paragraph four of this subsection without the need for approval by
the superintendent.
  (B)  Any policy OR POLICY RIDER which is held out or purported to be a
long-term care insurance policy by any insurer, agent,  broker,  person,
business  or  corporation doing business in or into this state which has
not been determined by the superintendent to qualify and which does  not
qualify  under  paragraph  four  of  this subsection for purposes of the
above referenced provisions of the tax law shall so state clearly, legi-
bly and in close physical proximity to any description of the policy  OR
POLICY  RIDER  as  a long-term care insurance policy that it does not so
qualify. This subsection shall also be deemed to  cover  any  statement,
advertisement  or  claim  concerning  such policy by any insurer, agent,
broker, person, business or corporation doing business in or  into  this
state.
  (C)  Violation  of  this  paragraph shall be considered a misrepresen-
tation under section [twenty-one] TWO THOUSAND ONE hundred  twenty-three
of this chapter.
  S  6. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.

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Senate Bill S5229A

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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Tony Avella

David J. Valesky

2015-S5229 - Details

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Tony Avella

David Carlucci

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