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

                                  10088

                          I N  A S S E M B L Y

                              May 10, 2016
                               ___________

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:

  Section 1. Subdivision 1 of section 190 of the tax law, as amended  by
section  102  of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
  1. General. [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST,  TWO
THOUSAND  SIXTEEN,  A taxpayer shall be allowed a credit against the tax
imposed by this article equal to twenty  percent  of  the  premium  paid
during  the  taxable  year for long-term care insurance, AND FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,  A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE  EQUAL TO TWENTY PERCENT OF THE PREMIUM PAID DURING THE TAXABLE YEAR
FOR LONG-TERM CARE INSURANCE  UNLESS  THE  PREMIUM  FOR  SUCH  INSURANCE
INCREASED  DURING  THE TAXABLE YEAR AND SUCH INCREASE WAS APPROVED AFTER
APPLICATION TO AND BY THE DEPARTMENT OF  FINANCIAL  SERVICES,  THEN  THE
AMOUNT OF CREDIT ALLOWED FOR SUCH INSURANCE SHALL BE TWENTY-FIVE PERCENT
OF THE PREMIUM PAID DURING THE TAXABLE YEAR FOR SUCH INSURANCE. 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 insur-
ance policy that qualifies for such credit pursuant to section one thou-
sand one hundred seventeen of the insurance law.
  S 2. Paragraph (a) of subdivision 14 of section 210-B of the tax  law,
as  added  by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (a) General. [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SIXTEEN, A taxpayer shall be allowed a credit against  the  tax
imposed  by  this  article  equal  to twenty percent of the premium paid
during the taxable year for long-term care insurance,  AND  FOR  TAXABLE
YEARS  BEGINNING  ON  AND  AFTER  JANUARY FIRST, TWO THOUSAND SIXTEEN, A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-

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

                                                           LBD13528-02-6

A. 10088                            2

CLE EQUAL TO TWENTY PERCENT OF THE PREMIUM PAID DURING THE TAXABLE  YEAR
FOR  LONG-TERM  CARE  INSURANCE  UNLESS  THE  PREMIUM FOR SUCH INSURANCE
INCREASED DURING THE TAXABLE YEAR AND SUCH INCREASE WAS  APPROVED  AFTER
APPLICATION  TO  AND  BY  THE DEPARTMENT OF FINANCIAL SERVICES, THEN THE
AMOUNT OF CREDIT ALLOWED FOR SUCH INSURANCE SHALL BE TWENTY-FIVE PERCENT
OF THE PREMIUM PAID DURING THE TAXABLE YEAR  FOR  SUCH  INSURANCE.    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  3. 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] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST,
TWO THOUSAND SIXTEEN, A taxpayer shall be allowed a credit  against  the
tax  imposed by this article equal to twenty percent of the premium paid
during the taxable year for long-term care insurance,  AND  FOR  TAXABLE
YEARS  BEGINNING  ON  AND  AFTER  JANUARY FIRST, TWO THOUSAND SIXTEEN, A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE IN AN AMOUNT EQUAL TO THE APPLICABLE PERCENTAGE OF THE PREMIUM  PAID
FOR  SUCH  LONG-TERM  CARE INSURANCE. THE APPLICABLE PERCENTAGE SHALL BE
BASED UPON THE TAXPAYER'S AGE WHEN HE OR  SHE  PURCHASED  THE  LONG-TERM
CARE  INSURANCE  POLICY  FOR  WHICH  CREDIT  IS  CLAIMED AND SHALL BE AS
FOLLOWS: (A) FOR POLICIES PURCHASED PRIOR TO THE AGE  OF  THIRTY,  FIFTY
PERCENT,  (B)  FOR  POLICIES  PURCHASED AFTER THE AGE OF TWENTY-NINE BUT
PRIOR TO THE AGE OF THIRTY-FIVE, FORTY-FIVE PERCENT,  (C)  FOR  POLICIES
PURCHASED  AFTER  THE  AGE OF THIRTY-FOUR BUT PRIOR TO THE AGE OF FORTY,
FORTY PERCENT, (D) FOR POLICIES PURCHASED AFTER THE AGE  OF  THIRTY-NINE
BUT  PRIOR  TO THE AGE OF FORTY-FIVE, THIRTY-FIVE PERCENT, (E) FOR POLI-
CIES PURCHASED AFTER THE AGE OF FORTY-FOUR  BUT  PRIOR  TO  THE  AGE  OF
FIFTY,  THIRTY  PERCENT,  (F)  FOR  POLICIES  PURCHASED AFTER THE AGE OF
FORTY-NINE BUT PRIOR TO THE AGE OF FIFTY-FIVE, TWENTY-FIVE PERCENT,  AND
(G)  FOR POLICIES PURCHASED AFTER THE AGE OF FIFTY-FIVE, TWENTY PERCENT.
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. 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 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] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, A taxpayer shall be allowed a credit against the tax imposed by
this article equal to twenty percent of  the  premium  paid  during  the
taxable  year for long-term care insurance, AND FOR TAXABLE YEARS BEGIN-
NING ON AND AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, A TAXPAYER  SHALL
BE  ALLOWED  A  CREDIT  AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO
TWENTY PERCENT OF THE PREMIUM PAID DURING THE TAXABLE YEAR FOR LONG-TERM
CARE INSURANCE UNLESS THE PREMIUM FOR SUCH  INSURANCE  INCREASED  DURING
THE TAXABLE YEAR AND SUCH INCREASE WAS APPROVED AFTER APPLICATION TO AND
BY  THE  DEPARTMENT  OF  FINANCIAL  SERVICES,  THEN THE AMOUNT OF CREDIT
ALLOWED FOR SUCH INSURANCE SHALL BE TWENTY-FIVE PERCENT OF  THE  PREMIUM
PAID DURING THE TAXABLE YEAR FOR SUCH INSURANCE. In order to qualify for

A. 10088                            3

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.  The  insurance law is amended by adding a new section 3216-a to
read as follows:
  S 3216-A. DOCUMENTATION TO BE PROVIDED TO LONG-TERM CARE POLICY  HOLD-
ERS.  (A)  ALL AUTHORIZED INSURERS ISSUING INSURANCE POLICIES SUBJECT TO
THE PROVISIONS OF SECTION ONE THOUSAND ONE  HUNDRED  SEVENTEEN  OF  THIS
CHAPTER  SHALL  ISSUE  TO  EACH  POLICY  HOLDER AN ANNUAL STATEMENT THAT
INCLUDES THE FOLLOWING INFORMATION:
  (1) THE DATE SUCH POLICY TOOK EFFECT;
  (2) THE AGE OF THE INSURED ON THE DATE THAT SUCH POLICY TOOK EFFECT;
  (3) THE ORIGINAL PREMIUM AMOUNT FOR SUCH POLICY;
  (4) FOR EACH PREMIUM INCREASE, IF ANY, THE DATE  AND  AMOUNT  OF  SUCH
INCREASE;
  (5) THE TOTAL AMOUNT OF PREMIUM PAID ON SUCH POLICY FOR THE IMMEDIATE-
LY PRIOR CALENDAR YEAR; AND
  (6) THE TOTAL AMOUNT OF PREMIUM PAID SINCE THE INCEPTION OF SUCH POLI-
CY.
  (B)  FOR PURPOSES OF THIS SECTION, THE TERM "POLICY HOLDER" SHALL MEAN
ANY PERSON WHO WAS A POLICY HOLDER AT ANY TIME DURING THE YEAR FOR WHICH
THE ANNUAL STATEMENT IS ISSUED.
  (C) THE ANNUAL STATEMENT PRESCRIBED BY THIS SECTION  MAY  BE  COMBINED
WITH  ANY  OTHER  STATEMENTS REQUIRED TO BE GIVEN TO SUCH POLICY HOLDERS
AND SHALL BE SENT TO SUCH POLICY HOLDERS  BY  THE  THIRTY-FIRST  DAY  OF
JANUARY FOLLOWING THE YEAR FOR WHICH THE ANNUAL STATEMENT IS ISSUED.
  S  6.  The  insurance law is amended by adding a new section 4306-h to
read as follows:
  S 4306-H. DOCUMENTATION TO BE PROVIDED TO LONG-TERM CARE POLICY  HOLD-
ERS.  (A)  ALL  INSURERS  ISSUING POLICIES PURSUANT TO THE PROVISIONS OF
SECTION FOUR THOUSAND THREE HUNDRED FOUR OF THIS ARTICLE AND SUBJECT  TO
THE  PROVISIONS OF SECTION FOUR THOUSAND THREE HUNDRED SIX OF THIS ARTI-
CLE THAT ARE FOR OR INCLUDE LONG-TERM CARE BENEFITS SHALL ISSUE TO  EACH
POLICY  HOLDER  AN ANNUAL STATEMENT THAT INCLUDES THE FOLLOWING INFORMA-
TION:
  (1) THE DATE SUCH POLICY TOOK EFFECT;
  (2) THE AGE OF THE INSURED ON THE DATE THAT SUCH POLICY TOOK EFFECT;
  (3) THE ORIGINAL PREMIUM AMOUNT FOR SUCH POLICY;
  (4) FOR EACH PREMIUM INCREASE, IF ANY, THE DATE  AND  AMOUNT  OF  SUCH
INCREASE;
  (5) THE TOTAL AMOUNT OF PREMIUM PAID ON SUCH POLICY FOR THE IMMEDIATE-
LY PRIOR CALENDAR YEAR; AND
  (6) THE TOTAL AMOUNT OF PREMIUM PAID SINCE THE INCEPTION OF SUCH POLI-
CY.
  (B)  FOR PURPOSES OF THIS SECTION, THE TERM "POLICY HOLDER" SHALL MEAN
ANY PERSON WHO WAS A POLICY HOLDER AT ANY TIME DURING THE YEAR FOR WHICH
THE ANNUAL STATEMENT IS ISSUED.
  (C) THE ANNUAL STATEMENT PRESCRIBED BY THIS SECTION  MAY  BE  COMBINED
WITH  ANY  OTHER  STATEMENTS REQUIRED TO BE GIVEN TO SUCH POLICY HOLDERS
AND SHALL BE SENT TO SUCH POLICY HOLDERS  BY  THE  THIRTY-FIRST  DAY  OF
JANUARY FOLLOWING THE YEAR FOR WHICH THE ANNUAL STATEMENT IS ISSUED.
  S 7. This act shall take effect immediately.