NY State Senate Bill 2017-S1453

Senate Bill S1453

2017-2018 Legislative Session

Increases from 20% to 40%, the tax credits for premiums paid for long-term care insurance premiums during certain taxable years

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Archive: Last Bill Status - In Senate Committee Finance 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 09, 2018	reported and committed to finance
Jan 03, 2018	referred to investigations and government operations returned to senate died in assembly
Jun 15, 2017	referred to ways and means delivered to assembly passed senate
Jun 14, 2017	ordered to third reading cal.1601 committee discharged and committed to rules
Jan 09, 2017	referred to investigations and government operations

Votes

- Jun 15, 2017 - Floor Vote
  S1453
  
  59
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 15, 2017
      
      aye (59)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (1)
      
      Krueger
      
      excused (3)
      
      Bailey
      
      Diaz
      
      Marcellino
  Jun 14, 2017 - Rules Committee Vote
  S1453
  
  24
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 14, 2017
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Gianaris
  Jan 9, 2018 - Investigations And Government Operations Committee Vote
  S1453
  
  9
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: Jan 9, 2018
      
      aye (9)
      
      Benjamin
      
      Carlucci
      
      Golden
      
      Hoylman-Sigal
      
      Kavanagh
      
      Lanza
      
      Murphy
      
      O'Mara
      
      Phillips

co-Sponsors

2017-S1453 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§190, 210-B, 606 & 1511, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S6768

2017-S1453 (ACTIVE) - Summary

Increases from 20% to 40%, the corporation, business franchise, personal income and insurance corporation tax credits for premiums paid for long-term care insurance premiums during the 2017, 2018, 2019 and 2020 taxable years.

2017-S1453 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1453

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

 PURPOSE :

The purpose of this bill is to provide additional tax credit
inducements to encourage individuals to either retain long term care
(LTC) insurance coverage or encourage more, currently non enrolled
individuals, to purchase long term care (LTC) insurance.

The LTC insurance market has recently become much more unstable due
to: a) significant reductions in the number of individuals that have
purchased coverage or who choose to continue to retain such coverage,
b) a significant reduction in the number of insurance carriers that
offer LTC insurance, and c)the approximately 50% increase in LTC
insurance premiums that has been granted in 2015 and the likely
possibility of vast increases being imposed in policy years 2016 and
beyond.

This enhanced tax credit is available for the next three years and
applies retroactively from January 1, 2017 to December 31, 2021 so
that New York State will have the sufficient time needed to develop
and enact new methodologies to help stabilize the currently unstable

and volatile LTC insurance market.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1: Amends Tax Law section 190 to increase the corporate income
tax credit for purchasing long term care insurance from 20% of the
premium paid to 40%. This enhanced tax credit shall be applicable for
premiums paid from January 1, 2017 to January 1, 2021.

Section 2: Amends Tax Law section 210-B to increase the franchise
income tax credit incentive for the computation income tax from 20% to
40% of the premium paid for LTC insurance.

Section 3: Amends Tax Law section 606 to increase the personal income
tax credit from 20% to 40% of the cost of premiums paid to purchase
LTC insurance.

Section 4: Amends Tax Law section 1511 to add the enhanced income tax
credit for insurance franchisees from 20% to 40% of the cost of
premiums for LTC insurance.

 JUSTIFICATION :

The purpose of this bill is to temporarily enhance the current 20% LTC
premium income tax credit to 40%, retroactively to January 1, 2015.
The underlying goal of this bill is to help to offset recently
approved LTC insurance premium rate increases for the next upcoming
three years. Some of the recently approved LTC insurance rates
increased by over 50%. Many current LTC policy holders are over the
age of 55 and cannot afford this drastic premium rate increase.  The
enhanced tax credit from 20% to 40% will give temporary relief to
those that currently have LTC insurance, help to stabilize the market,
and encourage younger healthier lives to think about purchasing LTC
policies which will help curtail any additional future premium rate
increases. This bill, by increasing the current 20% LTC premium income
tax credit to 40%, retroactively, to January 1, 2015, will help to
offset most or all of the recently approved LTC insurance rate
increases granted to insurers by the Department of Financial Services
(a three year policy period) for the next three years.

This measure's provisions sunset in three years on 12/31/18. The
reason for the three year sunset is to give sufficient time for the
Legislature and Governor to develop and implement new methodologies to
help stabilize the LTC insurance market over the long term. While this
bill does double the income tax credit for those premiums paid by
insureds, it should not be a significant fiscal hit on the State
Budget. This is because with the enactment of this measure, many
covered persons will continue to keep their LTC policies. If, however,
this measure is not enacted, many LTC policy insureds will let such
policies laps and should that occur, any long term care or nursing
home care required by such persons would not be financed by private
insurance carriers, but by public Medicaid payments that are supplied
by State and local governments.

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 and to increase the selection of adult care facilities such
insureds may go to.

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.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

It is the intent of this bill to stabilize the LTC insurance market so
that it can remain an important financing mechanism to finance end of
life, home health, and nursing home care. This, in the end, should
help to decrease State Medicaid expenditures.

 EFFECTIVE DATE :
This act shall take effect on January 1, 2017.

2017-S1453 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1453
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sens.  AVELLA, CARLUCCI, KLEIN, SAVINO -- 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 the tax credits
   for premiums paid for long-term care insurance

   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  of  the  premium  paid
 during the taxable year for long-term care insurance; PROVIDED, HOWEVER,
 THAT  FOR  TAXABLE YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND  TWENTY-ONE,  SUCH
 CREDIT  SHALL  BE  FORTY  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  quali-
 fies for such credit pursuant to section one thousand one hundred seven-
 teen 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 against the tax
 imposed by this article equal to twenty  percent  of  the  premium  paid
 during the taxable year for long-term care insurance; PROVIDED, HOWEVER,
 THAT  FOR  TAXABLE YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND  TWENTY-ONE,  SUCH
 CREDIT  SHALL  BE  FORTY  PERCENT OF THE PREMIUM PAID DURING THE TAXABLE
 YEAR FOR LONG-TERM CARE INSURANCE.  In order to qualify for such credit,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01182-01-7

 S. 1453                             2
 
 the taxpayer's premium payment must  be  for  the  purchase  of  or  for
 continuing  coverage under a long-term care insurance policy that quali-
 fies for such credit pursuant to section one thousand one hundred seven-
 teen 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  of  the  premium  paid
 during the taxable year for long-term care insurance; PROVIDED, HOWEVER,
 THAT  FOR  TAXABLE YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND  TWENTY-ONE,  SUCH
 CREDIT  SHALL  BE  FORTY  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 quali-
 fies for such credit pursuant to section one thousand one hundred seven-
 teen 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 subsection (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 of  the  premium  paid  during  the
 taxable  year  for long-term care insurance; PROVIDED, HOWEVER, THAT FOR
 TAXABLE YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND  SEVEN-
 TEEN  AND  BEFORE  JANUARY  FIRST,  TWO THOUSAND TWENTY-ONE, SUCH CREDIT
 SHALL BE FORTY 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.
   §  5.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after January 1, 2017.

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Senate Bill S1453

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Sponsored By

Tony Avella