EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0327*
HOUSE BILL 327
Q3 5lr1260
HB 218/24 – W&M CF SB 155
By: Delegate Stewart
Introduced and read first time: January 10, 2025
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Credit for Long–Term Care Premiums 2
(Long–Term Care Relief Act of 2025) 3
FOR the purpose of altering eligibility for and the maximum amount of a credit against the 4
State income tax for certain long–term care insurance premiums paid by a certain 5
taxpayer; and generally relating to an income tax credit for eligible long–term care 6
premiums. 7
BY repealing and reenacting, with amendments, 8
Article – Tax – General 9
Section 10–718 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2024 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Tax – General 15
10–718. 16
(a) (1) In this section[, “eligible] THE FOLLOWING WORDS HAVE THE 17
MEANINGS INDICATED. 18
(2) “ELIGIBLE long–term care premiums” means eligible long–term care 19
premiums within the meaning of § 213(d)(10) of the Internal Revenue Code for a long–term 20
care insurance contract covering an individual who is a Maryland resident. 21
(3) “TAXPAYER” MEANS A TAXPAYER WHO : 22
2 HOUSE BILL 327
(I) IS AT LEAST 85 YEARS OLD; AND 1
(II) IN THE TAXABLE YEAR FOR WHICH A CREDIT I S CLAIMED 2
UNDER THIS SECTION , HAS MARYLAND ADJUSTED GRO SS INCOME OF LESS TH AN: 3
1. $100,000 FOR A TAXPAYER FILIN G AS AN INDIVIDUAL ; 4
OR 5
2. $200,000 FOR A TAXPAYER FILIN G A JOINT RETURN . 6
(b) [An individual] SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A 7
TAXPAYER may claim a credit against the State income tax in an amount equal to 100% of 8
the eligible long–term care premiums paid by the [individual] TAXPAYER during the 9
taxable year for long–term care insurance covering the [individual] TAXPAYER or the 10
[individual’s] TAXPAYER’S spouse, parent, stepparent, child, or stepchild. 11
(c) The credit allowed under this section: 12
(1) [may not exceed $500 for] WITH RESPECT TO each insured 13
INDIVIDUAL covered by long–term care insurance for which the [individual] TAXPAYER 14
pays the premiums, MAY NOT EXCEED THE L ESSER OF: 15
(I) 15% OF THE ELIGIBLE LONG –TERM CARE PREMIUMS P AID 16
DURING THE TAXABLE Y EAR; OR 17
(II) $1,500; 18
(2) may not be claimed by more than one taxpayer with respect to the same 19
insured individual; and 20
(3) may not be claimed with respect to an insured individual if[: 21
(i)] the insured individual was covered by long–term care insurance 22
PURCHASED at any time [before July 1, 2000; or 23
(ii) the credit has been claimed with respect to that insured 24
individual by any taxpayer for any prior taxable year] AFTER DECEMBER 31, 2004. 25
(d) (1) The total amount of the credit allowed under this section for any taxable 26
year may not exceed the State income tax for that taxable year, calculated before 27
application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, 28
but after application of the other credits allowable under this subtitle. 29
(2) The unused amount of the credit for any taxable year may not be carried 30
over to any other taxable year. 31 HOUSE BILL 327 3
(e) The credit allowed under this section does not affect the treatment under this 1
title of any deduction or exclusion allowed for federal income tax purposes for the eligible 2
long–term care premiums paid by the individual. 3
(f) On or before December 1, 2005, and each December 1 thereafter, the 4
Comptroller shall report to the Governor and, subject to § 2–1257 of the State Government 5
Article, to the General Assembly, regarding the credit allowed under this section, including: 6
(1) the number of individuals who have claimed the credit, the amount 7
allowed as credits, and the additional number of individuals covered by long–term care 8
insurance as a result of the credit; and 9
(2) the savings under the State’s Medical Assistance Program as a result 10
of additional individuals being covered by long–term care insurance as a result of the credit. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2025, and shall be applicable to all taxable years beginning after December 31, 2024. 13