S T A T E O F N E W Y O R K
________________________________________________________________________
2559--A
2017-2018 Regular Sessions
I N S E N A T E
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:
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 EIGHTEEN, 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 EIGHTEEN, 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06027-02-8
S. 2559--A 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] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND EIGHTEEN, 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 EIGHTEEN, 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
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] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST,
TWO THOUSAND EIGHTEEN, 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 EIGHTEEN, 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.
§ 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
EIGHTEEN, A taxpayer shall be allowed a credit against the tax imposed
by this article equal to twenty percent of the premium paid during the
S. 2559--A 3
taxable year for long-term care insurance, AND FOR TAXABLE YEARS BEGIN-
NING ON AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, 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
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. The insurance law is amended by adding a new section 3216-a to
read as follows:
§ 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.
§ 6. The insurance law is amended by adding a new section 4306-h to
read as follows:
§ 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.
S. 2559--A 4
(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.
§ 7. This act shall take effect immediately.
