Maryland 2024 Regular Session

Maryland Senate Bill SB86

Introduced
1/10/24  

Caption

Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2024)

Impact

The bill specifically targets individuals with a Maryland adjusted gross income of less than $100,000 for single filers and $200,000 for joint filers, ensuring that the benefits are directed towards those who may be in greater need of financial assistance for long-term care costs. The introduction of this tax credit is expected to encourage more individuals to invest in long-term care insurance, which could lead to a decrease in reliance on state-funded medical assistance programs as more residents are able to afford their own long-term care.

Summary

Senate Bill 86, titled 'Income Tax - Credit for Long-Term Care Premiums,' introduces a tax credit for Maryland residents who pay for long-term care insurance. The bill aims to make long-term care more affordable for residents aged 85 and older by providing a credit that can significantly reduce their state income tax liability. Notably, the bill allows eligible taxpayers to claim a credit equal to 100% of the long-term care premiums paid, but only up to a maximum of $1,500 per insured individual, based on certain income thresholds.

Contention

While supporters of SB 86 argue that it will promote the financial independence of the elderly and provide crucial support for long-term care expenses, there are potential areas of contention regarding the scope and limitations of the bill. Critics may raise concerns about the sustainability of tax credits and the overall fiscal impact on state revenues. Furthermore, issues such as the effectiveness of the credit in increasing insurance uptake and its implications for those who do not qualify based on income limits could ignite debate during legislative discussions.

Companion Bills

MD HB218

Crossfiled Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2024)

Previously Filed As

MD SB137

Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2023)

MD HB160

Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2023)

MD HB1185

Income Tax - Credit for Long-Term Care Premiums

MD HB28

Income Tax – Credit for Caregivers of Senior Family Members

MD SB344

Income Tax - Caregiver Tax Credit

MD HB680

Income Tax - Student Loan Debt Relief Tax Credit - Alterations

MD SB243

Income Tax - Child and Dependent Care Tax Credit - Alterations

MD HB1294

Property Tax Credit for Long-Term Residents - Established

MD HB765

Property and Income Taxes - Credits for Construction and Purchase of Housing in Western Maryland

MD SB207

Income Tax - Octogenarian Credit

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