Maryland 2024 Regular Session

Maryland Senate Bill SB86 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0086
6	6
7	7	SENATE BILL 86
8	8	Q3 4lr1167
9	9	(PRE–FILED) CF HB 218
10	10	By: Senator Klausmeier
11	11	Requested: October 25, 2023
12	12	Introduced and read first time: January 10, 2024
13	13	Assigned to: Budget and Taxation
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Income Tax – Credit for Long–Term Care Premiums 2
20	20	(Long–Term Care Relief Act of 2024) 3
21	21
22	22	FOR the purpose of altering eligibility for and the maximum amount of a credit against the 4
23	23	State income tax for certain long–term care insurance premiums paid by a certain 5
24	24	taxpayer; and generally relating to an income tax credit for eligible long–term care 6
25	25	premiums. 7
26	26
27	27	BY repealing and reenacting, with amendments, 8
28	28	Article – Tax – General 9
29	29	Section 10–718 10
30	30	Annotated Code of Maryland 11
31	31	(2022 Replacement Volume and 2023 Supplement) 12
32	32
33	33	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
34	34	That the Laws of Maryland read as follows: 14
35	35
36	36	Article – Tax – General 15
37	37
38	38	10–718. 16
39	39
40	40	(a) (1) In this section[, “eligible] THE FOLLOWING WORDS HA VE THE 17
41	41	MEANINGS INDICATED . 18
42	42
43	43	(2) “ELIGIBLE long–term care premiums” means eligible long–term care 19
44	44	premiums within the meaning of § 213(d)(10) of the Internal Revenue Code for a long–term 20
45	45	care insurance contract covering an individual who is a Maryland resident. 21
46	46
47	47	(3) “TAXPAYER” MEANS A TAXPAYER WHO : 22 2 SENATE BILL 86
48	48
49	49
50	50
51	51	(I) IS AT LEAST 85 YEARS OLD; AND 1
52	52
53	53	(II) IN THE TAXABLE YEAR FOR WHICH A CREDIT I S CLAIMED 2
54	54	UNDER THIS SECTION , HAS MARYLAND ADJUSTED GRO SS INCOME OF LESS TH AN: 3
55	55
56	56	1. $100,000 FOR A TAXPAYER FILING AS A N INDIVIDUAL; 4
57	57	OR 5
58	58
59	59	2. $200,000 FOR A TAXPAYER FILIN G A JOINT RETURN . 6
60	60
61	61	(b) [An individual] SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A 7
62	62	TAXPAYER may claim a credit against the State income tax in an amount equal to 100% of 8
63	63	the eligible long–term care premiums paid by the [individual] TAXPAYER during the 9
64	64	taxable year for long–term care insurance covering the [individual] TAXPAYER or the 10
65	65	[individual’s] TAXPAYER’S spouse, parent, stepparent, child, or stepchild. 11
66	66
67	67	(c) The credit allowed under this section: 12
68	68
69	69	(1) [may not exceed $500 for] WITH RESPECT TO each insured 13
70	70	INDIVIDUAL covered by long–term care insurance for which the [individual] TAXPAYER 14
71	71	pays the premiums, MAY NOT EXCEED THE L ESSER OF: 15
72	72
73	73	(I) 15% OF THE ELIGIBLE LONG –TERM CARE PREMIUMS P AID 16
74	74	DURING THE TAXABLE Y EAR; OR 17
75	75
76	76	(II) $1,500; 18
77	77
78	78	(2) may not be claimed by more than one taxpayer with respect to the same 19
79	79	insured individual; and 20
80	80
81	81	(3) may not be claimed with respect to an insured individual if[: 21
82	82
83	83	(i)] the insured individual was covered by long–term care insurance 22
84	84	PURCHASED at any time [before July 1, 2000; or 23
85	85
86	86	(ii) the credit has been claimed with respect to that insured 24
87	87	individual by any taxpayer for any prior taxable year] AFTER DECEMBER 31, 2004. 25
88	88
89	89	(d) (1) The total amount of the credit allowed under this section for any taxable 26
90	90	year may not exceed the State income tax for that taxable year, calculated before 27
91	91	application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, 28
92	92	but after application of the other credits allowable under this subtitle. 29
93	93
94	94	(2) The unused amount of the credit for any taxable year may not be carried 30 SENATE BILL 86 3
95	95
96	96
97	97	over to any other taxable year. 1
98	98
99	99	(e) The credit allowed under this section does not affect the treatment under this 2
100	100	title of any deduction or exclusion allowed for federal income tax purposes for the eligible 3
101	101	long–term care premiums paid by the individual. 4
102	102
103	103	(f) On or before December 1, 2005, and each December 1 thereafter, the 5
104	104	Comptroller shall report to the Governor and, subject to § 2–1257 of the State Government 6
105	105	Article, to the General Assembly, regarding the credit allowed under this section, including: 7
106	106
107	107	(1) the number of individuals who have claimed the credit, the amount 8
108	108	allowed as credits, and the additional number of individuals covered by long–term care 9
109	109	insurance as a result of the credit; and 10
110	110
111	111	(2) the savings under the State’s Medical Assistance Program as a result 11
112	112	of additional individuals being covered by long–term care insurance as a result of the credit. 12
113	113
114	114	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
115	115	1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 14
116	116