STATE OF NEW YORK ________________________________________________________________________ 5067 2023-2024 Regular Sessions IN SENATE February 22, 2023 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law and the insurance law, in relation to the tax credits for premiums paid for long-term care insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 190 of the tax law, as amended by 2 section 102 of part A of chapter 59 of the laws of 2014, is amended to 3 read as follows: 4 1. General. A taxpayer shall be allowed a credit not to exceed one 5 thousand dollars for each policy of insurance, against the tax imposed 6 by this article equal to [twenty percent] the amount of the premium paid 7 during the taxable year for long-term care insurance. In order to quali- 8 fy for such credit, the taxpayer's premium payment must be for the 9 purchase of or for continuing coverage under a long-term care insurance 10 policy that qualifies for such credit pursuant to section one thousand 11 one hundred seventeen of the insurance law. 12 § 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law, 13 as added by section 17 of part A of chapter 59 of the laws of 2014, is 14 amended to read as follows: 15 (a) General. A taxpayer shall be allowed a credit, not to exceed one 16 thousand dollars for each policy of insurance, against the tax imposed 17 by this article equal to [twenty percent] the amount of the premium paid 18 during the taxable year for long-term care insurance. In order to quali- 19 fy for such credit, the taxpayer's premium payment must be for the 20 purchase of or for continuing coverage under a long-term care insurance 21 policy that qualifies for such credit pursuant to section one thousand 22 one hundred seventeen of the insurance law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08518-01-3
S. 5067 2 1 § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as 2 amended by section 1 of part E of chapter 59 of the laws of 2020, is 3 amended to read as follows: 4 (1) Residents. There shall be allowed a credit against the tax imposed 5 by this article in an amount equal to [twenty percent] the amount of the 6 premiums paid during the taxable year for long-term care insurance. The 7 credit amount shall not exceed one thousand [five hundred] dollars for 8 each policy of insurance and shall be allowed only if the amount of New 9 York adjusted gross income required to be reported on the return is less 10 than two hundred fifty thousand dollars. In order to qualify for such 11 credit, the taxpayer's premium payment must be for the purchase of or 12 for continuing coverage under a long-term care insurance policy that 13 qualifies for such credit pursuant to section one thousand one hundred 14 seventeen of the insurance law. If the amount of the credit allowable 15 under this subsection for any taxable year shall exceed the taxpayer's 16 tax for such year, the excess may be carried over to the following year 17 or years and may be deducted from the taxpayer's tax for such year or 18 years. 19 § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as 20 amended by section 21 of part B of chapter 58 of the laws of 2004, is 21 amended to read as follows: 22 (1) A taxpayer shall be allowed a credit, not to exceed one thousand 23 dollars for each policy of insurance, against the tax imposed by this 24 article equal to [twenty percent] the amount of the premium paid during 25 the taxable year for long-term care insurance. In order to qualify for 26 such credit, the taxpayer's premium payment must be for the purchase of 27 or for continuing coverage under a long-term care insurance policy that 28 qualifies for such credit pursuant to section one thousand one hundred 29 seventeen of the insurance law. 30 § 5. Paragraph 1 of subsection (g) of section 1117 of the insurance 31 law, as amended by chapter 417 of the laws of 2001, is amended to read 32 as follows: 33 (1) Except for certain group contracts described in paragraph four of 34 this subsection, in order for premium payments for long-term care insur- 35 ance to qualify for purposes of section one hundred ninety, subdivision 36 [twenty-five-a] fourteen of section two hundred [ten] ten-B, subsection 37 (aa) of section six hundred six[, subsection (k) of section one thousand 38 four hundred fifty-six] and subsection (m) of section one thousand five 39 hundred eleven of the tax law, the long-term care insurance must be 40 approved by the superintendent pursuant to this subsection. Prior to 41 approving any such insurance, the superintendent shall conclude that it 42 meets minimum standards, including minimum loss ratio standards under 43 this section or section three thousand two hundred twenty-nine of this 44 chapter and is a qualified long-term care insurance contract as defined 45 in section 7702B of the internal revenue code. 46 § 6. This act shall take effect on the first of January next succeed- 47 ing the date on which it shall have become a law.