Researcher: HP Page 1 5/10/21
OLR Bill Analysis
HB 6674
AN ACT ESTABLISHING AN INCOME TAX CREDIT FOR LONG -
TERM CARE INSURANCE PREMIUM PAYMENTS.
SUMMARY
This bill establishes a personal income tax credit for certain
taxpayers who make premium payments on individual long-term care
insurance policies (see BACKGROUND). The credit does not apply to
the withholding tax.
Under the bill, the credit equals 20% of premiums paid in the tax
year by an eligible taxpayer who is the insured under the policy. To
qualify for the credit, a taxpayer must be a Connecticut resident for
state income tax purposes with a federal adjusted gross income (AGI)
below $200,0000. (It is unclear how these limits apply to married
individuals filing jointly.)
EFFECTIVE DATE: January 1, 2022, and applicable to tax years
starting on or after that date.
BACKGROUND
Long-Term Care Policy
As used in the bill, a long-term care policy is an individual health
insurance policy issued to state residents that provides benefits for the
care or treatment of an injury, illness, or loss of functional capacity in a
setting other than an acute care hospital, including a nursing home and
an insured's own home, for at least one year after an elimination
period. It excludes policies that primarily provide Medicare
supplement, basic medical-surgical expense, hospital confinement
indemnity, major medical expense, disability income protection,
accident only, specified accident, and limited benefit health coverage
(CGS ยง 38a-501). 2021HB-06674-R000657-BA.DOCX
Researcher: HP Page 2 5/10/21
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 47 Nay 0 (04/22/2021)