Senate Bill S4933

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4933
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 18, 2021
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law and the insurance law, in  relation  to  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  NOT  TO  EXCEED  ONE
 THOUSAND  DOLLARS  FOR EACH POLICY OF INSURANCE, against the tax imposed
 by this article equal to [twenty percent] THE AMOUNT of the premium paid
 during the taxable year for long-term care insurance. In order to quali-
 fy 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.
   §  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, NOT TO EXCEED ONE
 THOUSAND DOLLARS FOR EACH POLICY OF INSURANCE, against the  tax  imposed
 by this article equal to [twenty percent] THE AMOUNT of the premium paid
 during the taxable year for long-term care insurance. In order to quali-
 fy  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.
                                                            LBD06776-01-1

              

 S. 4933                             2
 
   § 3. 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, is
 amended to read as follows:
   (1) Residents. There shall be allowed a credit against the tax imposed
 by this article in an amount equal to [twenty percent] THE AMOUNT of the
 premiums  paid during the taxable year for long-term care insurance. The
 credit amount shall not exceed one thousand [five hundred]  dollars  FOR
 EACH  POLICY OF INSURANCE and shall be allowed only if the amount of New
 York adjusted gross income required to be reported on the return is less
 than two hundred fifty thousand dollars. 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:
   (1)  A  taxpayer shall be allowed a credit, NOT TO EXCEED ONE THOUSAND
 DOLLARS FOR EACH POLICY OF INSURANCE, against the tax  imposed  by  this
 article  equal to [twenty percent] THE AMOUNT 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. Paragraph 1 of subsection (g) of section 1117  of  the  insurance
 law,  as  amended by chapter 417 of the laws of 2001, is 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  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 eleven of the tax law, the  long-term  care  insurance  must  be
 approved  by  the  superintendent  pursuant to this subsection. Prior to
 approving any such insurance, the superintendent 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.
   § 6. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.