NY State Senate Bill 2009-S3201

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Apr 28, 2009	reported and committed to finance
Apr 13, 2009	print number 3201a
Apr 13, 2009	amend and recommit to investigations and government operations
Mar 12, 2009	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2009-S3201 - Details

Current Committee:: Senate Investigations And Government Operations
Versions Introduced in 2011-2012 Legislative Session:: S2559

2009-S3201 - Summary

Enhances tax incentives for the purchase of long-term care insurance policies; provides a credit of 75% of premium paid for the first year, 50% for the second year and 25% in the third year.

2009-S3201 - Sponsor Memo

                                 BILL NUMBER:  S3201

 TITLE OF BILL :

An act to amend the tax law, in relation to long-term care insurance
tax credits


 PURPOSE OR GENERAL IDEA OF BILL :

This legislation would enhance the tax incentives for the purchase of
long-term care insurance policies.

 SUMMARY OF PROVISIONS :

This legislation amends subdivision 1 of section 190 of the tax law,
paragraph 1 of subsection aa of section 606 of the tax law,
subdivision 1 of subdivision k of section 1456 of the tax law,
paragraph 1 of subsection m of section 1511 of the tax law, and
paragraph a of subdivision 25-a of section 210 of the tax law, to
provide a tax credit equal to 75% of the premium paid during the first
taxable year in which the long-term care insurance was purchased, 50%
of the premium paid in the following year, and 25% of the premium in
the third year. In order to qualify for a credit, the premium payment
must be for the purchase of or for continuing coverage under a
long-term care insurance policy that qualifies for such credit

pursuant to section 1117 of the insurance law.

 JUSTIFICATION :

Long-term care insurance policies are purchased with the intent of
covering basic activities of daily living and are typically associated
with individuals over the age of 65 years. However, studies have shown
that fewer individuals are purchasing policies each year and even
fewer at an earlier age. As a result, individuals are relying more on
Medicaid for their long-term care needs.  In 2006, New York State
spent approximately $19 billion on long-term care while California
spent an estimated $12 billion, according to a study conducted by the
Rockefeller Institute of Government. The enhanced tax credit proposed
by this legislation would encourage more individuals to purchase
policies at a younger age and minimize the burden on the State's
Medicaid system.

Currently, a credit of 20% of the premium paid is given for every year
the policy is maintained.  While this current credit certainly
provides a valuable benefit to the consumer, studies conducted by the
New York State Insurance Department indicate fewer policies have been
purchased over the past several years. (on average, 20,000 long-term
care insurance policies sold annually from 2001-2004 to nearly 12,500
annually from 2005-2008.) This legislation offers a tax credit of 75%
of the premium paid during the first year of purchase, 50% of the
premium during the following year, and 25% of the premium during the
third year with the intent to encourage individuals to purchase
long-term care policies and lessen the burden on the Medicaid system.

Historically, individuals who purchase long-term care insurance and
keep it for three years, are less likely to lapse in payments or
cancel the policy, signifying less of a need for the current 20% tax
credit schedule; in fact, with the proposed credit schedule, the state
could save millions of dollars.

 PRIOR LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to long-term
insurance contracts purchased or entered into on and after January
1st, 2010.

2009-S3201 - Bill Text download pdf

2009-S3201A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Versions Introduced in 2011-2012 Legislative Session:: S2559

2009-S3201A (ACTIVE) - Summary

Enhances tax incentives for the purchase of long-term care insurance policies; provides a credit of 75% of premium paid for the first year, 50% for the second year and 25% in the third year.

2009-S3201A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3201A

 TITLE OF BILL :

An act to amend the tax law, in relation to long-term care insurance
tax credits


 PURPOSE OR GENERAL IDEA OF BILL :

This legislation would enhance the tax incentives for the purchase of
long-term care insurance policies.

 SUMMARY OF PROVISIONS :

This legislation amends subdivision 1 of section 190 of the tax law,
paragraph 1 of subsection aa of section 606 of the tax law, paragraph
1 of subdivision k of section 1456 of the tax law, subdivision 1 of
subsection m of section 1511 of the tax law, and paragraph a of
subdivision 25-a of section 210 of the tax law, to provide a tax
credit equal to 75% of the premium paid during the first taxable year
in which the long-term care insurance was purchased, 50% of the
premium paid in the following year, and 25% of the premium in the
third year. In order to qualify for a credit, the premium payment must
be for the purchase of or for continuing coverage under a long-term
care insurance policy that qualifies for such credit pursuant to

section 1117 of the insurance law.

 JUSTIFICATION :

Long-term care insurance policies are purchased with the intent of
covering basic activities of daily living and are typically associated
with individuals over the age of 65 years. However, studies have shown
that fewer individuals are purchasing policies each year and even
fewer at an earlier age. As a result, individuals are relying more on
Medicaid for their long-term care needs.  In 2006, New York State
spent approximately $19 billion on long-term care while California
spent an estimated $12 billion, according to a study conducted by the
Rockefeller Institute of Government. The enhanced tax credit proposed
by this legislation would encourage more individuals to purchase
policies at a younger age and minimize the burden on the State's
Medicaid system.

Currently, a credit of 20% of the premium paid is given for every year
the policy is maintained.  While this current credit certainly
provides a valuable benefit to the consumer, studies conducted by the
New York State Insurance Department indicate fewer policies have been
purchased over the past several years. (on average, 20,000 long-term
care insurance policies sold annually from 2001-2004 to nearly 12,500
annually from 2005-2008.) This legislation offers a tax credit of 75%
of the premium paid during the first year of purchase, 50% of the
premium during the following year, and 25% of the premium during the
third year with the intent to encourage individuals to purchase
long-term care policies and lessen the burden on the Medicaid system.

Historically, individuals who purchase long-term care insurance and
keep it for three years, are less likely to lapse in payments or
cancel the policy, signifying less of a need for the current 20% tax
credit schedule; in fact, with the proposed credit schedule, the state
could save millions of dollars.

 PRIOR LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to long-term
insurance contracts purchased or entered into on and after January
1st, 2010.

2009-S3201A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3201--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 12, 2009
                               ___________

Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to long-term care insurance tax
  credits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 190 of the tax law, as amended  by
section  17  of  part B of chapter 58 of the laws of 2004, is amended to
read as follows:
  1. General. A taxpayer shall be  allowed  a  credit  against  the  tax
imposed  by  this  article,  other  than  the  taxes and fees imposed by
sections one hundred eighty and one hundred eighty-one of this  article,
equal  to  [twenty]  SEVENTY-FIVE percent of the premium paid during the
taxable year [for] IN WHICH THE long-term care insurance WAS  PURCHASED,
FIFTY  PERCENT OF THE PREMIUM PAID IN THE FOLLOWING YEAR AND TWENTY-FIVE
PERCENT OF THE PREMIUM PAID IN THE THIRD YEAR. In order to  qualify  for
such  credit, the taxpayer's premium payment must be for the purchase of
or for continuing coverage under a long-term care insurance policy  that
qualifies  for  such credit pursuant to section one thousand one hundred
seventeen of the insurance law.
  S 2. Paragraph 1 of subsection (aa) of section 606 of the tax law,  as
amended  by  section  1  of part P of chapter 61 of the laws of 2005, is
amended to read as follows:
  (1) Residents. A taxpayer shall be allowed a credit  against  the  tax
imposed  by  this  article equal to [twenty] SEVENTY-FIVE percent of the
premium paid during the taxable year [for] IN WHICH THE  long-term  care
insurance  WAS  PURCHASED,  FIFTY  PERCENT  OF  THE  PREMIUM PAID IN THE
FOLLOWING YEAR AND TWENTY-FIVE PERCENT OF THE PREMIUM PAID IN THE  THIRD
YEAR.    In  order  to  qualify  for such credit, the taxpayer's premium

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09435-04-9

S. 3201--A                          2

payment must be for the purchase of or for continuing coverage  under  a
long-term  care insurance policy that qualifies for such credit pursuant
to section one thousand one hundred seventeen of the insurance  law.  If
the amount of the credit allowable under this subsection for any taxable
year  shall  exceed  the taxpayer's tax for such year, the excess may be
carried over to the following year or years and may be deducted from the
taxpayer's tax for such year or years.
  S 3. Paragraph 1 of subsection (k) of section 1456 of the tax law,  as
amended  by  section  20 of part B of chapter 58 of the laws of 2004, is
amended to read as follows:
  (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
this  article equal to [twenty] SEVENTY-FIVE percent of the premium paid
during the taxable year [for] IN WHICH THE long-term care insurance  WAS
PURCHASED,  FIFTY  PERCENT OF THE PREMIUM PAID IN THE FOLLOWING YEAR AND
TWENTY-FIVE PERCENT OF THE PREMIUM PAID IN THE THIRD YEAR.  In order  to
qualify  for such credit, the taxpayer's premium payment must be for the
purchase of or for continuing coverage under a long-term care  insurance
policy  that  qualifies for such credit pursuant to section one thousand
one hundred seventeen of the insurance law.
  S 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as
amended by section 21 of part B of chapter 58 of the laws  of  2004,  is
amended to read as follows:
  (1)  A  taxpayer  shall be allowed a credit against the tax imposed by
this article equal to [twenty] SEVENTY-FIVE percent of the premium  paid
during  the taxable year [for] IN WHICH THE long-term care insurance WAS
PURCHASED, FIFTY PERCENT OF THE PREMIUM PAID IN THE FOLLOWING  YEAR  AND
TWENTY-FIVE  PERCENT OF THE PREMIUM PAID IN THE THIRD YEAR.  In order to
qualify for such credit, the taxpayer's premium payment must be for  the
purchase  of or for continuing coverage under a long-term care insurance
policy that qualifies for such credit pursuant to section  one  thousand
one hundred seventeen of the insurance law.
  S  5. Paragraph (a) of subdivision 25-a of section 210 of the tax law,
as amended by section 18 of part B of chapter 58 of the laws of 2004, is
amended to read as follows:
  (a) A taxpayer shall be allowed a credit against the  tax  imposed  by
this  article equal to [twenty] SEVENTY-FIVE percent of the premium paid
during the taxable year [for] IN WHICH THE long-term care insurance  WAS
PURCHASED,  FIFTY  PERCENT OF THE PREMIUM PAID IN THE FOLLOWING YEAR AND
TWENTY-FIVE PERCENT OF THE PREMIUM PAID IN THE THIRD YEAR.  In order  to
qualify  for such credit, the taxpayer's premium payment must be for the
purchase of or for continuing coverage under a long-term care  insurance
policy  that  qualifies for such credit pursuant to section one thousand
one hundred seventeen of the insurance law.
  S 6. This act shall take effect immediately and shall apply  to  long-
term  care  insurance  contracts  purchased or entered into on and after
January 1, 2010.

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Senate Bill S3201

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

2009-S3201 - Details

2009-S3201 - Summary

2009-S3201 - Sponsor Memo

2009-S3201 - Bill Text download pdf

2009-S3201A (ACTIVE) - Details

2009-S3201A (ACTIVE) - Summary

2009-S3201A (ACTIVE) - Sponsor Memo

2009-S3201A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3201

Share this bill

Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

2009-S3201 - Details

2009-S3201 - Summary

2009-S3201 - Sponsor Memo

2009-S3201 - Bill Text download pdf

2009-S3201A (ACTIVE) - Details

2009-S3201A (ACTIVE) - Summary

2009-S3201A (ACTIVE) - Sponsor Memo

2009-S3201A (ACTIVE) - Bill Text download pdf

Comments