Maryland 2025 Regular Session

Maryland House Bill HB327 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	hb0327
6	6
7	7	HOUSE BILL 327
8	8	Q3 5lr1260
9	9	HB 218/24 – W&M CF SB 155
10	10	By: Delegate Stewart
11	11	Introduced and read first time: January 10, 2025
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income Tax – Credit for Long–Term Care Premiums 2
19	19	(Long–Term Care Relief Act of 2025) 3
20	20
21	21	FOR the purpose of altering eligibility for and the maximum amount of a credit against the 4
22	22	State income tax for certain long–term care insurance premiums paid by a certain 5
23	23	taxpayer; and generally relating to an income tax credit for eligible long–term care 6
24	24	premiums. 7
25	25
26	26	BY repealing and reenacting, with amendments, 8
27	27	Article – Tax – General 9
28	28	Section 10–718 10
29	29	Annotated Code of Maryland 11
30	30	(2022 Replacement Volume and 2024 Supplement) 12
31	31
32	32	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
33	33	That the Laws of Maryland read as follows: 14
34	34
35	35	Article – Tax – General 15
36	36
37	37	10–718. 16
38	38
39	39	(a) (1) In this section[, “eligible] THE FOLLOWING WORDS HAVE THE 17
40	40	MEANINGS INDICATED. 18
41	41
42	42	(2) “ELIGIBLE long–term care premiums” means eligible long–term care 19
43	43	premiums within the meaning of § 213(d)(10) of the Internal Revenue Code for a long–term 20
44	44	care insurance contract covering an individual who is a Maryland resident. 21
45	45
46	46	(3) “TAXPAYER” MEANS A TAXPAYER WHO : 22
47	47	2 HOUSE BILL 327
48	48
49	49
50	50	(I) IS AT LEAST 85 YEARS OLD; AND 1
51	51
52	52	(II) IN THE TAXABLE YEAR FOR WHICH A CREDIT I S CLAIMED 2
53	53	UNDER THIS SECTION , HAS MARYLAND ADJUSTED GRO SS INCOME OF LESS TH AN: 3
54	54
55	55	1. $100,000 FOR A TAXPAYER FILIN G AS AN INDIVIDUAL ; 4
56	56	OR 5
57	57
58	58	2. $200,000 FOR A TAXPAYER FILIN G A JOINT RETURN . 6
59	59
60	60	(b) [An individual] SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A 7
61	61	TAXPAYER may claim a credit against the State income tax in an amount equal to 100% of 8
62	62	the eligible long–term care premiums paid by the [individual] TAXPAYER during the 9
63	63	taxable year for long–term care insurance covering the [individual] TAXPAYER or the 10
64	64	[individual’s] TAXPAYER’S spouse, parent, stepparent, child, or stepchild. 11
65	65
66	66	(c) The credit allowed under this section: 12
67	67
68	68	(1) [may not exceed $500 for] WITH RESPECT TO each insured 13
69	69	INDIVIDUAL covered by long–term care insurance for which the [individual] TAXPAYER 14
70	70	pays the premiums, MAY NOT EXCEED THE L ESSER OF: 15
71	71
72	72	(I) 15% OF THE ELIGIBLE LONG –TERM CARE PREMIUMS P AID 16
73	73	DURING THE TAXABLE Y EAR; OR 17
74	74
75	75	(II) $1,500; 18
76	76
77	77	(2) may not be claimed by more than one taxpayer with respect to the same 19
78	78	insured individual; and 20
79	79
80	80	(3) may not be claimed with respect to an insured individual if[: 21
81	81
82	82	(i)] the insured individual was covered by long–term care insurance 22
83	83	PURCHASED at any time [before July 1, 2000; or 23
84	84
85	85	(ii) the credit has been claimed with respect to that insured 24
86	86	individual by any taxpayer for any prior taxable year] AFTER DECEMBER 31, 2004. 25
87	87
88	88	(d) (1) The total amount of the credit allowed under this section for any taxable 26
89	89	year may not exceed the State income tax for that taxable year, calculated before 27
90	90	application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, 28
91	91	but after application of the other credits allowable under this subtitle. 29
92	92
93	93	(2) The unused amount of the credit for any taxable year may not be carried 30
94	94	over to any other taxable year. 31 HOUSE BILL 327 3
95	95
96	96
97	97
98	98	(e) The credit allowed under this section does not affect the treatment under this 1
99	99	title of any deduction or exclusion allowed for federal income tax purposes for the eligible 2
100	100	long–term care premiums paid by the individual. 3
101	101
102	102	(f) On or before December 1, 2005, and each December 1 thereafter, the 4
103	103	Comptroller shall report to the Governor and, subject to § 2–1257 of the State Government 5
104	104	Article, to the General Assembly, regarding the credit allowed under this section, including: 6
105	105
106	106	(1) the number of individuals who have claimed the credit, the amount 7
107	107	allowed as credits, and the additional number of individuals covered by long–term care 8
108	108	insurance as a result of the credit; and 9
109	109
110	110	(2) the savings under the State’s Medical Assistance Program as a result 10
111	111	of additional individuals being covered by long–term care insurance as a result of the credit. 11
112	112
113	113	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
114	114	1, 2025, and shall be applicable to all taxable years beginning after December 31, 2024. 13