S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5591
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2017
                                ___________
 
 Introduced  by  M.  of A. GJONAJ, GARBARINO, RAIA, WALTER -- Multi-Spon-
   sored by -- M. of A. SIMON -- 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 cred-
   its for premiums paid for long-term care insurance policies

   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 taxpayer shall be  allowed  a  credit  against  the  tax
 imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
 AGES  of  the  premium  paid  during the taxable year for long-term care
 insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
 ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF  SUBSECTION
 (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
 FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
 FOUR POLICY YEARS;
   (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
 THE FIRST FOUR POLICY YEARS; OR
   (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09046-01-7

 A. 5591                             2
 
   § 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  taxpayer  shall  be allowed a credit against the tax
 imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
 AGES of the premium paid during the  taxable  year  for  long-term  care
 insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
 ANT  TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION
 (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (I) FORTY PERCENT IF THE INSURED IS LESS THAN FORTY YEARS  OF  AGE  AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (II)  THIRTY  PERCENT  IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE,
 BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST
 FOUR POLICY YEARS;
   (III) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
 THE FIRST FOUR POLICY YEARS; OR
   (IV)  TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   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.
   § 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 taxpayer shall be allowed a credit  against  the  tax
 imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
 AGES  of  the  premium  paid  during the taxable year for long-term care
 insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
 ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF  SUBSECTION
 (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
 FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
 FOUR POLICY YEARS;
   (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
 THE FIRST FOUR POLICY YEARS; OR
   (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   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.
   § 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:

 A. 5591                             3
 
   (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
 this  article equal to [twenty percent] THE FOLLOWING PERCENTAGES of the
 premium paid during the taxable year for long-term care insurance OR FOR
 A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED  PURSUANT  TO  SUBPARA-
 GRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION
 ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
 FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
 FOUR POLICY YEARS;
   (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
 THE FIRST FOUR POLICY YEARS; OR
   (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   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.
   § 5. Paragraphs 1 and 2 of subsection  (g)  of  section  1117  of  the
 insurance  law,  paragraph  1  as  amended by chapter 417 of the laws of
 2001, paragraph 2 as amended by section 12 of part E of  chapter  63  of
 the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended
 by chapter 311 of the laws of 2002, are amended to read as follows:
   (1)  Except for certain group contracts described in paragraph four of
 this subsection, in order for premium payments for long-term care insur-
 ance, OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY  ISSUED  PURSUANT
 TO  SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A)
 OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS ARTICLE, to qualify
 for purposes of section one hundred ninety, subdivision  [twenty-five-a]
 FOURTEEN  of section two hundred [ten] TEN-B, subsection (aa) of section
 six hundred six[, subsection (k) of section one  thousand  four  hundred
 fifty-six] and subsection (m) of section one thousand five hundred elev-
 en  of  the  tax  law, the long-term care insurance OR SUCH POLICY RIDER
 must be approved by the  superintendent  pursuant  to  this  subsection.
 Prior  to  approving any such insurance OR POLICY RIDER, the superinten-
 dent shall conclude that it meets minimum standards,  including  minimum
 loss  ratio  standards  under this section or section three thousand two
 hundred twenty-nine of this chapter and is a  qualified  long-term  care
 insurance  contract  as defined in section 7702B of the internal revenue
 code.
   (2) (A) No insurer, agent, broker,  person,  business  or  corporation
 doing  business  in or into this state shall in any manner state, adver-
 tise or claim that a long-term care insurance policy, OR A POLICY  RIDER
 TO  A  LIFE  INSURANCE  POLICY ISSUED PURSUANT TO SUBPARAGRAPH (C), (D),
 (E), OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION  ONE  THOUSAND
 ONE  HUNDRED  THIRTEEN  OF  THIS  ARTICLE, qualifies for purposes of the
 above-referenced provisions of the tax law unless either: (i) the super-
 intendent has issued a letter or other written instrument to the insurer
 stating that the policy OR POLICY RIDER has been determined  to  qualify
 under  this  subsection,  or  (ii)  the policy OR POLICY RIDER qualifies
 under paragraph four of this subsection without the need for approval by
 the superintendent.

 A. 5591                             4
 
   (B) Any policy OR POLICY RIDER which is held out or purported to be  a
 long-term  care  insurance policy by any insurer, agent, broker, person,
 business or corporation doing business in or into this state  which  has
 not  been determined by the superintendent to qualify and which does not
 qualify  under  paragraph  four  of  this subsection for purposes of the
 above referenced provisions of the tax law shall so state clearly, legi-
 bly and in close physical proximity to any description of the policy  OR
 POLICY  RIDER  as  a long-term care insurance policy that it does not so
 qualify. This subsection shall also be deemed to  cover  any  statement,
 advertisement  or  claim  concerning  such policy by any insurer, agent,
 broker, person, business or corporation doing business in or  into  this
 state.
   (C)  Violation  of  this  paragraph shall be considered a misrepresen-
 tation under section [twenty-one] TWO THOUSAND ONE hundred  twenty-three
 of this chapter.
   §  6. This act shall take effect on the first of April next succeeding
 the date on which it shall have become a law.