Bill Text: NY S02559 | 2017-2018 | General Assembly | Amended

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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 (Republican 3-0)

Status: (Engrossed - Dead) 2018-01-30 - PRINT NUMBER 2559A [S02559 Detail]

Download: New_York-2017-S02559-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         2559--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 13, 2017
                                       ___________
        Introduced  by  Sens.  GOLDEN, ROBACH -- read twice and ordered printed,
          and when printed to be committed to the  Committee  on  Investigations
          and  Government Operations -- recommitted to the Committee on Investi-
          gations and Government Operations in accordance with  Senate  Rule  6,
          sec.  8 -- reported favorably from said committee and committed to the
          Committee on Finance -- committee discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
        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 eighteen, 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 eighteen, 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.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06027-02-8
        S. 2559--A                          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] For taxable years beginning before January first, two
     5  thousand  eighteen, 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  eighteen,  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
    16  order to qualify for such credit, the taxpayer's premium payment must be
    17  for the purchase of or for continuing coverage under  a  long-term  care
    18  insurance  policy that qualifies for such credit pursuant to section one
    19  thousand one hundred seventeen of the insurance law.
    20    § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law,  as
    21  amended  by  section  1  of part P of chapter 61 of the laws of 2005, is
    22  amended to read as follows:
    23    (1) Residents. [A] For taxable years beginning before  January  first,
    24  two  thousand eighteen, a taxpayer shall be allowed a credit against the
    25  tax imposed by this article equal to twenty percent of the premium  paid
    26  during  the  taxable  year for long-term care insurance, and for taxable
    27  years beginning on and after January first,  two  thousand  eighteen,  a
    28  taxpayer shall be allowed a credit against the tax imposed by this arti-
    29  cle  in an amount equal to the applicable percentage of the premium paid
    30  for such long-term care insurance. The applicable  percentage  shall  be
    31  based  upon  the  taxpayer's  age when he or she purchased the long-term
    32  care insurance policy for which  credit  is  claimed  and  shall  be  as
    33  follows:  (a)  for  policies purchased prior to the age of thirty, fifty
    34  percent, (b) for policies purchased after the  age  of  twenty-nine  but
    35  prior  to  the  age of thirty-five, forty-five percent, (c) for policies
    36  purchased after the age of thirty-four but prior to the  age  of  forty,
    37  forty  percent,  (d) for policies purchased after the age of thirty-nine
    38  but prior to the age of forty-five, thirty-five percent, (e)  for  poli-
    39  cies  purchased  after  the  age  of  forty-four but prior to the age of
    40  fifty, thirty percent, (f) for  policies  purchased  after  the  age  of
    41  forty-nine  but prior to the age of fifty-five, twenty-five percent, and
    42  (g) for policies purchased after the age of fifty-five, twenty  percent.
    43  In order to qualify for such credit, the taxpayer's premium payment must
    44  be for the purchase of or for continuing coverage under a long-term care
    45  insurance  policy that qualifies for such credit pursuant to section one
    46  thousand one hundred seventeen of the insurance law. If  the  amount  of
    47  the  credit  allowable  under this subsection for any taxable year shall
    48  exceed the taxpayer's tax for such year, the excess may be carried  over
    49  to  the  following year or years and may be deducted from the taxpayer's
    50  tax for such year or years.
    51    § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as
    52  amended by section 21 of part B of chapter 58 of the laws  of  2004,  is
    53  amended to read as follows:
    54    (1) [A] For taxable years beginning before January first, two thousand
    55  eighteen,  a  taxpayer shall be allowed a credit against the tax imposed
    56  by this article equal to twenty percent of the premium paid  during  the
        S. 2559--A                          3
     1  taxable  year for long-term care insurance, and for taxable years begin-
     2  ning on and after January first, two thousand eighteen, a taxpayer shall
     3  be allowed a credit against the tax imposed by  this  article  equal  to
     4  twenty percent of the premium paid during the taxable year for long-term
     5  care  insurance  unless  the premium for such insurance increased during
     6  the taxable year and such increase was approved after application to and
     7  by the department of financial  services,  then  the  amount  of  credit
     8  allowed  for  such insurance shall be twenty-five percent of the premium
     9  paid during the taxable year for such insurance. In order to qualify for
    10  such credit, the taxpayer's premium payment must be for the purchase  of
    11  or  for continuing coverage under a long-term care insurance policy that
    12  qualifies for such credit pursuant to section one thousand  one  hundred
    13  seventeen of the insurance law.
    14    §  5.  The  insurance law is amended by adding a new section 3216-a to
    15  read as follows:
    16    § 3216-a. Documentation to be provided to long-term care policy  hold-
    17  ers.  (a)  All authorized insurers issuing insurance policies subject to
    18  the provisions of section one thousand one  hundred  seventeen  of  this
    19  chapter  shall  issue  to  each  policy  holder an annual statement that
    20  includes the following information:
    21    (1) the date such policy took effect;
    22    (2) the age of the insured on the date that such policy took effect;
    23    (3) the original premium amount for such policy;
    24    (4) for each premium increase, if any, the date  and  amount  of  such
    25  increase;
    26    (5) the total amount of premium paid on such policy for the immediate-
    27  ly prior calendar year; and
    28    (6) the total amount of premium paid since the inception of such poli-
    29  cy.
    30    (b)  For purposes of this section, the term "policy holder" shall mean
    31  any person who was a policy holder at any time during the year for which
    32  the annual statement is issued.
    33    (c) The annual statement prescribed by this section  may  be  combined
    34  with  any  other  statements required to be given to such policy holders
    35  and shall be sent to such policy holders  by  the  thirty-first  day  of
    36  January following the year for which the annual statement is issued.
    37    §  6.  The  insurance law is amended by adding a new section 4306-h to
    38  read as follows:
    39    § 4306-h. Documentation to be provided to long-term care policy  hold-
    40  ers.  (a)  All  insurers  issuing policies pursuant to the provisions of
    41  section four thousand three hundred four of this article and subject  to
    42  the  provisions of section four thousand three hundred six of this arti-
    43  cle that are for or include long-term care benefits shall issue to  each
    44  policy  holder  an annual statement that includes the following informa-
    45  tion:
    46    (1) the date such policy took effect;
    47    (2) the age of the insured on the date that such policy took effect;
    48    (3) the original premium amount for such policy;
    49    (4) for each premium increase, if any, the date  and  amount  of  such
    50  increase;
    51    (5) the total amount of premium paid on such policy for the immediate-
    52  ly prior calendar year; and
    53    (6) the total amount of premium paid since the inception of such poli-
    54  cy.
        S. 2559--A                          4
     1    (b)  For purposes of this section, the term "policy holder" shall mean
     2  any person who was a policy holder at any time during the year for which
     3  the annual statement is issued.
     4    (c)  The  annual  statement prescribed by this section may be combined
     5  with any other statements required to be given to  such  policy  holders
     6  and  shall  be  sent  to  such policy holders by the thirty-first day of
     7  January following the year for which the annual statement is issued.
     8    § 7. This act shall take effect immediately.