OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-6674
AN ACT ESTABLISHING AN INCOME TAX CREDIT FOR LONG-
TERM CARE INSURANCE PREMIUM PAYMENTS.
Primary Analyst: CW 5/7/21
Contributing Analyst(s):
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services GF - Revenue
Loss
None 59.3 million
Department of Revenue Services GF - Cost None 10,000 -
20,000
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which establishes a personal income tax credit for certain
taxpayers equal to 20% of long-term care insurance premiums paid,
results in: 1) a General Fund revenue loss of $59.3 million annually
beginning in FY 23, and 2) a one-time cost of between $10,000 and
$20,000 to the Department of Revenue Services to implement tax form
changes in FY 23 only.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
Sources: American Association of Retired People 5 Things You Should Know About Long-
Term Care Insurance
Hartford Business Journal "Long-term Care Insurers Request Big Rate Hikes, But
COVID-19 Not To Blame" 6/27/2020 2021HB-06674-R000657-FN.DOCX Page 2 of 2
InvestmentNews "States Try To Beat Back Rate Increases On Long-term Care
Policies" 9/13/2018