Amd §§190, 210-B, 606 & 1511, Tax L; amd §1117, Ins L
Establishes tax credits for premiums paid for life insurance which is used for long term health care; enhances tax credits for long term health care insurance premiums.
STATE OF NEW YORK
________________________________________________________________________
5591
2017-2018 Regular Sessions
IN ASSEMBLY
February 10, 2017
___________
Introduced by M. of A. GJONAJ, GARBARINO, RAIA, WALTER -- Multi-Spon-
sored by -- M. of A. SIMON -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law and the insurance law, in relation to cred-
its for premiums paid for long-term care insurance policies
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 against the tax
5 imposed by this article equal to [twenty percent] the following percent-
6 ages of the premium paid during the taxable year for long-term care
7 insurance or for a policy rider to a life insurance policy issued pursu-
8 ant to subparagraph (C), (D), (E) or (F) of paragraph one of subsection
9 (a) of section one thousand one hundred thirteen of the insurance law:
10 (a) forty percent if the insured is less than forty years of age at
11 the end of the tax year for the first four policy years;
12 (b) thirty percent if the insured is less than fifty years of age, but
13 forty or more years of age, at the end of the tax year for the first
14 four policy years;
15 (c) twenty-five percent if the insured is less than fifty-five years
16 of age, but fifty or more years of age, at the end of the tax year for
17 the first four policy years; or
18 (d) twenty percent if the insured is fifty-five or more years of age
19 at the end of the tax year, and for all other insureds who have had a
20 policy for five years or more.
21 In order to qualify for such credit, the taxpayer's premium payment
22 must be for the purchase of or for continuing coverage under a long-term
23 care insurance policy that qualifies for such credit pursuant to section
24 one thousand one hundred seventeen of the insurance law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09046-01-7
A. 5591 2
1 § 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law,
2 as added by section 17 of part A of chapter 59 of the laws of 2014, is
3 amended to read as follows:
4 (a) General. A taxpayer shall be allowed a credit against the tax
5 imposed by this article equal to [twenty percent] the following percent-
6 ages of the premium paid during the taxable year for long-term care
7 insurance or for a policy rider to a life insurance policy issued pursu-
8 ant to subparagraph (C), (D), (E) or (F) of paragraph one of subsection
9 (a) of section one thousand one hundred thirteen of the insurance law:
10 (i) forty percent if the insured is less than forty years of age at
11 the end of the tax year for the first four policy years;
12 (ii) thirty percent if the insured is less than fifty years of age,
13 but forty or more years of age, at the end of the tax year for the first
14 four policy years;
15 (iii) twenty-five percent if the insured is less than fifty-five years
16 of age, but fifty or more years of age, at the end of the tax year for
17 the first four policy years; or
18 (iv) twenty percent if the insured is fifty-five or more years of age
19 at the end of the tax year, and for all other insureds who have had a
20 policy for five years or more.
21 In order to qualify for such credit, the taxpayer's premium payment
22 must be for the purchase of or for continuing coverage under a long-term
23 care insurance policy that qualifies for such credit pursuant to section
24 one thousand one hundred seventeen of the insurance law.
25 § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as
26 amended by section 1 of part P of chapter 61 of the laws of 2005, is
27 amended to read as follows:
28 (1) Residents. A taxpayer shall be allowed a credit against the tax
29 imposed by this article equal to [twenty percent] the following percent-
30 ages of the premium paid during the taxable year for long-term care
31 insurance or for a policy rider to a life insurance policy issued pursu-
32 ant to subparagraph (C), (D), (E) or (F) of paragraph one of subsection
33 (a) of section one thousand one hundred thirteen of the insurance law:
34 (A) forty percent if the insured is less than forty years of age at
35 the end of the tax year for the first four policy years;
36 (B) thirty percent if the insured is less than fifty years of age, but
37 forty or more years of age, at the end of the tax year for the first
38 four policy years;
39 (C) twenty-five percent if the insured is less than fifty-five years
40 of age, but fifty or more years of age, at the end of the tax year for
41 the first four policy years; or
42 (D) twenty percent if the insured is fifty-five or more years of age
43 at the end of the tax year, and for all other insureds who have had a
44 policy for five years or more.
45 In order to qualify for such credit, the taxpayer's premium payment
46 must be for the purchase of or for continuing coverage under a long-term
47 care insurance policy that qualifies for such credit pursuant to section
48 one thousand one hundred seventeen of the insurance law. If the amount
49 of the credit allowable under this subsection for any taxable year shall
50 exceed the taxpayer's tax for such year, the excess may be carried over
51 to the following year or years and may be deducted from the taxpayer's
52 tax for such year or years.
53 § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as
54 amended by section 21 of part B of chapter 58 of the laws of 2004, is
55 amended to read as follows:
A. 5591 3
1 (1) A taxpayer shall be allowed a credit against the tax imposed by
2 this article equal to [twenty percent] the following percentages of the
3 premium paid during the taxable year for long-term care insurance or for
4 a policy rider to a life insurance policy issued pursuant to subpara-
5 graph (C), (D), (E) or (F) of paragraph one of subsection (a) of section
6 one thousand one hundred thirteen of the insurance law:
7 (A) forty percent if the insured is less than fifty years of age at
8 the end of the tax year for the first four policy years;
9 (B) thirty percent if the insured is less than fifty years of age, but
10 forty or more years of age, at the end of the tax year for the first
11 four policy years;
12 (C) twenty-five percent if the insured is less than fifty-five years
13 of age, but fifty or more years of age, at the end of the tax year for
14 the first four policy years; or
15 (D) twenty percent if the insured is fifty-five or more years of age
16 at the end of the tax year, and for all other insureds who have had a
17 policy for five years or more.
18 In order to qualify for such credit, the taxpayer's premium payment
19 must be for the purchase of or for continuing coverage under a long-term
20 care insurance policy that qualifies for such credit pursuant to section
21 one thousand one hundred seventeen of the insurance law.
22 § 5. Paragraphs 1 and 2 of subsection (g) of section 1117 of the
23 insurance law, paragraph 1 as amended by chapter 417 of the laws of
24 2001, paragraph 2 as amended by section 12 of part E of chapter 63 of
25 the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended
26 by chapter 311 of the laws of 2002, are amended to read as follows:
27 (1) Except for certain group contracts described in paragraph four of
28 this subsection, in order for premium payments for long-term care insur-
29 ance, or for a policy rider to a life insurance policy issued pursuant
30 to subparagraph (C), (D), (E) or (F) of paragraph one of subsection (a)
31 of section one thousand one hundred thirteen of this article, to qualify
32 for purposes of section one hundred ninety, subdivision [twenty-five-a]
33 fourteen of section two hundred [ten] ten-B, subsection (aa) of section
34 six hundred six[, subsection (k) of section one thousand four hundred
35 fifty-six] and subsection (m) of section one thousand five hundred elev-
36 en of the tax law, the long-term care insurance or such policy rider
37 must be approved by the superintendent pursuant to this subsection.
38 Prior to approving any such insurance or policy rider, the superinten-
39 dent shall conclude that it meets minimum standards, including minimum
40 loss ratio standards under this section or section three thousand two
41 hundred twenty-nine of this chapter and is a qualified long-term care
42 insurance contract as defined in section 7702B of the internal revenue
43 code.
44 (2) (A) No insurer, agent, broker, person, business or corporation
45 doing business in or into this state shall in any manner state, adver-
46 tise or claim that a long-term care insurance policy, or a policy rider
47 to a life insurance policy issued pursuant to subparagraph (C), (D),
48 (E), or (F) of paragraph one of subsection (a) of section one thousand
49 one hundred thirteen of this article, qualifies for purposes of the
50 above-referenced provisions of the tax law unless either: (i) the super-
51 intendent has issued a letter or other written instrument to the insurer
52 stating that the policy or policy rider has been determined to qualify
53 under this subsection, or (ii) the policy or policy rider qualifies
54 under paragraph four of this subsection without the need for approval by
55 the superintendent.
A. 5591 4
1 (B) Any policy or policy rider which is held out or purported to be a
2 long-term care insurance policy by any insurer, agent, broker, person,
3 business or corporation doing business in or into this state which has
4 not been determined by the superintendent to qualify and which does not
5 qualify under paragraph four of this subsection for purposes of the
6 above referenced provisions of the tax law shall so state clearly, legi-
7 bly and in close physical proximity to any description of the policy or
8 policy rider as a long-term care insurance policy that it does not so
9 qualify. This subsection shall also be deemed to cover any statement,
10 advertisement or claim concerning such policy by any insurer, agent,
11 broker, person, business or corporation doing business in or into this
12 state.
13 (C) Violation of this paragraph shall be considered a misrepresen-
14 tation under section [twenty-one] two thousand one hundred twenty-three
15 of this chapter.
16 § 6. This act shall take effect on the first of April next succeeding
17 the date on which it shall have become a law.
