S T A T E O F N E W Y O R K
________________________________________________________________________
5591
2017-2018 Regular Sessions
I N A S S E M B L Y
February 10, 2017
___________
Introduced by M. of A. GJONAJ, GARBARINO, RAIA, WALTER -- Multi-Spon-
sored by -- M. of A. SIMON -- 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 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.
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.
LBD09046-01-7
A. 5591 2
§ 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.
§ 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.
§ 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:
A. 5591 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 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.
§ 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
under paragraph four of this subsection without the need for approval by
the superintendent.
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(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.
§ 6. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.