NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4093
SPONSOR: Stern TITLE OF BILL:
An act to amend the tax law, in relation to providing for a personal
income tax deduction for long term care insurance riders
PURPOSE OR GENERAL IDEA OF BILL:
Under current law, individuals can receive tax deductions on the
purchase of long term care insurance plans. This bill would extend those
same tax deductibility provisions to long term care insurance riders.
SUMMARY OF PROVISIONS:
Section 1: Amends Subsection (c) of section 612 of the tax law by adding
a new paragraph 48.
Section 2: Sets the effective date.
JUSTIFICATION:
As many as 70% of Americans will require some form of long term care
during their lifetime. Current costs for long term care facilities can
run anywhere between $70,000 - $150,000 annually in a semi-private or
private nursing home. Given these exorbitant costs, and a rapidly aging
population, Medicare and Medicaid won't be able to fully cover our
future long term care needs, which is why it's imperative to have
private market options to help families in need.
Long term care insurance policies have long been tax deductible. Howev-
er, the market has changed and we now have life insurance policies with
a long term care rider, also known as a "Hybrid Life Insurance Policy."
These policies provide financial benefits to the insured in the event
they require hands-on daily care when unable to provide it for them-
selves. Given the growing popularity of hybrid life insurance policies,
it is only appropriate to provide consumers with the same tax incentive
that is presently available with the purchase of a traditional long term
care insurance plan.
PRIOR LEGISLATIVE HISTORY:
2023-2024:A2101,Referred to Ways and Means
2021-2022:A2408,Referred to Ways and Means
2019-2020:A8456,Referred to Ways and Means
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on or after the first of January in the year in which it
shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
4093
2025-2026 Regular Sessions
IN ASSEMBLY
January 31, 2025
___________
Introduced by M. of A. STERN -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to providing for a personal
income tax deduction for long term care insurance riders
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (c) of section 612 of the tax law is amended by
2 adding a new paragraph 48 to read as follows:
3 (48) The portion of the premiums paid during the taxable year by a
4 taxpayer attributable to the cost of a long term care insurance rider
5 under a life insurance policy.
6 § 2. This act shall take effect immediately and shall apply to taxable
7 years commencing on or after the first of January in the year in which
8 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01474-01-5
