Bill Text: NY A04944 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to increasing the tax credit for the purchase of long-term care insurance; requires insurers to provide certain documentation to policyholders.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-29 - print number 4944a [A04944 Detail]
Download: New_York-2017-A04944-Introduced.html
Bill Title: Relates to increasing the tax credit for the purchase of long-term care insurance; requires insurers to provide certain documentation to policyholders.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-29 - print number 4944a [A04944 Detail]
Download: New_York-2017-A04944-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4944 2017-2018 Regular Sessions IN ASSEMBLY February 6, 2017 ___________ Introduced by M. of A. SCHIMMINGER -- 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 the tax credit for the purchase of 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] For taxable years beginning before January first, two 5 thousand seventeen, a taxpayer shall be allowed a credit against the tax 6 imposed by this article equal to twenty percent of the premium paid 7 during the taxable year for long-term care insurance, and for taxable 8 years beginning on and after January first, two thousand seventeen, a 9 taxpayer shall be allowed a credit against the tax imposed by this arti- 10 cle equal to twenty percent of the premium paid during the taxable year 11 for long-term care insurance unless the premium for such insurance 12 increased during the taxable year and such increase was approved after 13 application to and by the department of financial services, then the 14 amount of credit allowed for such insurance shall be twenty-five percent 15 of the premium paid during the taxable year for such insurance. In order 16 to qualify for such credit, the taxpayer's premium payment must be for 17 the purchase of or for continuing coverage under a long-term care insur- 18 ance policy that qualifies for such credit pursuant to section one thou- 19 sand one hundred seventeen of the insurance law. 20 § 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law, 21 as added by section 17 of part A of chapter 59 of the laws of 2014, is 22 amended to read as follows: 23 (a) General. [A] For taxable years beginning before January first, two 24 thousand seventeen, a taxpayer shall be allowed a credit against the tax 25 imposed by this article equal to twenty percent of the premium paid EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06027-01-7A. 4944 2 1 during the taxable year for long-term care insurance, and for taxable 2 years beginning on and after January first, two thousand seventeen, a 3 taxpayer shall be allowed a credit against the tax imposed by this arti- 4 cle equal to twenty percent of the premium paid during the taxable year 5 for long-term care insurance unless the premium for such insurance 6 increased during the taxable year and such increase was approved after 7 application to and by the department of financial services, then the 8 amount of credit allowed for such insurance shall be twenty-five percent 9 of the premium paid during the taxable year for such insurance. In 10 order to qualify for such credit, the taxpayer's premium payment must be 11 for the purchase of or for continuing coverage under a long-term care 12 insurance policy that qualifies for such credit pursuant to section one 13 thousand one hundred seventeen of the insurance law. 14 § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as 15 amended by section 1 of part P of chapter 61 of the laws of 2005, is 16 amended to read as follows: 17 (1) Residents. [A] For taxable years beginning before January first, 18 two thousand seventeen, a taxpayer shall be allowed a credit against the 19 tax imposed by this article equal to twenty percent of the premium paid 20 during the taxable year for long-term care insurance, and for taxable 21 years beginning on and after January first, two thousand seventeen, a 22 taxpayer shall be allowed a credit against the tax imposed by this arti- 23 cle in an amount equal to the applicable percentage of the premium paid 24 for such long-term care insurance. The applicable percentage shall be 25 based upon the taxpayer's age when he or she purchased the long-term 26 care insurance policy for which credit is claimed and shall be as 27 follows: (a) for policies purchased prior to the age of thirty, fifty 28 percent, (b) for policies purchased after the age of twenty-nine but 29 prior to the age of thirty-five, forty-five percent, (c) for policies 30 purchased after the age of thirty-four but prior to the age of forty, 31 forty percent, (d) for policies purchased after the age of thirty-nine 32 but prior to the age of forty-five, thirty-five percent, (e) for poli- 33 cies purchased after the age of forty-four but prior to the age of 34 fifty, thirty percent, (f) for policies purchased after the age of 35 forty-nine but prior to the age of fifty-five, twenty-five percent, and 36 (g) for policies purchased after the age of fifty-five, twenty percent. 37 In order to qualify for such credit, the taxpayer's premium payment must 38 be for the purchase of or for continuing coverage under a long-term care 39 insurance policy that qualifies for such credit pursuant to section one 40 thousand one hundred seventeen of the insurance law. If the amount of 41 the credit allowable under this subsection for any taxable year shall 42 exceed the taxpayer's tax for such year, the excess may be carried over 43 to the following year or years and may be deducted from the taxpayer's 44 tax for such year or years. 45 § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as 46 amended by section 21 of part B of chapter 58 of the laws of 2004, is 47 amended to read as follows: 48 (1) [A] for taxable years beginning before January first, two thousand 49 seventeen, a taxpayer shall be allowed a credit against the tax imposed 50 by this article equal to twenty percent of the premium paid during the 51 taxable year for long-term care insurance, and for taxable years begin- 52 ning on and after January first, two thousand seventeen, a taxpayer 53 shall be allowed a credit against the tax imposed by this article equal 54 to twenty percent of the premium paid during the taxable year for long- 55 term care insurance unless the premium for such insurance increased 56 during the taxable year and such increase was approved after applicationA. 4944 3 1 to and by the department of financial services, then the amount of cred- 2 it allowed for such insurance shall be twenty-five percent of the premi- 3 um paid during the taxable year for such insurance. In order to qualify 4 for such credit, the taxpayer's premium payment must be for the purchase 5 of or for continuing coverage under a long-term care insurance policy 6 that qualifies for such credit pursuant to section one thousand one 7 hundred seventeen of the insurance law. 8 § 5. The insurance law is amended by adding a new section 3216-a to 9 read as follows: 10 § 3216-a. Documentation to be provided to long-term care policy hold- 11 ers. (a) All authorized insurers issuing insurance policies subject to 12 the provisions of section one thousand one hundred seventeen of this 13 chapter shall issue to each policy holder an annual statement that 14 includes the following information: 15 (1) the date such policy took effect; 16 (2) the age of the insured on the date that such policy took effect; 17 (3) the original premium amount for such policy; 18 (4) for each premium increase, if any, the date and amount of such 19 increase; 20 (5) the total amount of premium paid on such policy for the immediate- 21 ly prior calendar year; and 22 (6) the total amount of premium paid since the inception of such poli- 23 cy. 24 (b) For purposes of this section, the term "policy holder" shall mean 25 any person who was a policy holder at any time during the year for which 26 the annual statement is issued. 27 (c) The annual statement prescribed by this section may be combined 28 with any other statements required to be given to such policy holders 29 and shall be sent to such policy holders by the thirty-first day of 30 January following the year for which the annual statement is issued. 31 § 6. The insurance law is amended by adding a new section 4306-h to 32 read as follows: 33 § 4306-h. Documentation to be provided to long-term care policy hold- 34 ers. (a) All insurers issuing policies pursuant to the provisions of 35 section four thousand three hundred four of this article and subject to 36 the provisions of section four thousand three hundred six of this arti- 37 cle that are for or include long-term care benefits shall issue to each 38 policy holder an annual statement that includes the following informa- 39 tion: 40 (1) the date such policy took effect; 41 (2) the age of the insured on the date that such policy took effect; 42 (3) the original premium amount for such policy; 43 (4) for each premium increase, if any, the date and amount of such 44 increase; 45 (5) the total amount of premium paid on such policy for the immediate- 46 ly prior calendar year; and 47 (6) the total amount of premium paid since the inception of such poli- 48 cy. 49 (b) For purposes of this section, the term "policy holder" shall mean 50 any person who was a policy holder at any time during the year for which 51 the annual statement is issued. 52 (c) The annual statement prescribed by this section may be combined 53 with any other statements required to be given to such policy holders 54 and shall be sent to such policy holders by the thirty-first day of 55 January following the year for which the annual statement is issued. 56 § 7. This act shall take effect immediately.
