Long-Term Care Tax Credit Act

Long-Term Care Tax Credit Act

Long-Term Care Tax Credit Act

Model Legislation

Section 1. Title. This Act may be cited as the “Long-Term Care Tax Credit Act”.

Section 2. Main Provisions.

(A) A taxpayer shall be allowed a credit against the state income tax in an amount equal to 10 percent to 20 percent of the premium cost paid during the taxable year for a long-term care insurance policy that offers coverage to either the individual, the individual’s spouse, or a dependent for whom the individual was allowed to deduct a personal exemption for the taxable year.

(B) No taxpayer shall be entitled to such credit with respect to the same expended amount for long-term care insurance which are claimed by another taxpayer.

Section 3.

(A) The credit allowed by this Act may not exceed five hundred dollars ($500) or the taxpayers income tax liability, which ever is less, for each long-term care insurance policy.

(B) Any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer’s succeeding years’ tax liability.

(C) No credit shall be allowed under this Act with respect to any premium for long-term care insurance either deducted or subtracted by the taxpayer in arriving at [the state’s] net taxable income or with respect to any premiums for long-term care insurance for which amounts were excluded from [the state’s] net taxable income.

Section 4. {Severability Clause.}

Section 5. {Repealer Clause.}

Section 6. {Effective Date.}


Reapproved by ALEC Board of Directors on January 28, 2013.