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HF 2234

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to taxation; individual income; increasing 
  1.3             the maximum long-term care insurance credit, reducing 
  1.4             the lifetime benefit requirement, and extending the 
  1.5             credit to employers; providing a sunset for the 
  1.6             credit; amending Minnesota Statutes 2000, section 
  1.7             290.0672. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 290.0672, is 
  1.10  amended to read: 
  1.11     290.0672 [LONG-TERM CARE INSURANCE CREDIT.] 
  1.12     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.13  section, the following terms have the meanings given. 
  1.14     (b) "Long-term care insurance" means a policy that: 
  1.15     (1) qualifies for a deduction under section 213 of the 
  1.16  Internal Revenue Code, disregarding the 7.5 percent income test; 
  1.17  or meets the requirements given in section 62A.46; or provides 
  1.18  similar coverage issued under the laws of another jurisdiction; 
  1.19  and 
  1.20     (2) has a lifetime long-term care benefit limit of not less 
  1.21  than $100,000 $50,000; and 
  1.22     (3) has been offered in compliance with the inflation 
  1.23  protection requirements of section 62S.23. 
  1.24     (c) "Qualified beneficiary" means the taxpayer or the 
  1.25  taxpayer's spouse.  
  1.26     (d) "Premiums deducted in determining federal taxable 
  2.1   income" means the lesser of (1) long-term care insurance 
  2.2   premiums that qualify as deductions under section 213 of the 
  2.3   Internal Revenue Code; and (2) the total amount deductible for 
  2.4   medical care under section 213 of the Internal Revenue Code. 
  2.5      Subd. 2.  [CREDIT INDIVIDUALS.] A taxpayer is allowed a 
  2.6   credit against the tax imposed by this chapter for long-term 
  2.7   care insurance policy premiums paid during the tax year.  The 
  2.8   credit for each policy equals 25 percent of premiums paid to the 
  2.9   extent not deducted in determining federal taxable income.  A 
  2.10  taxpayer may claim a credit for only one policy for each 
  2.11  qualified beneficiary.  A maximum of $100 $200 applies to each 
  2.12  qualified beneficiary.  The maximum total credit allowed per 
  2.13  year under this subdivision is $200 $400 for married couples 
  2.14  filing joint returns and $100 $200 for all other filers.  For a 
  2.15  nonresident or part-year resident, the credit determined under 
  2.16  this section must be allocated based on the percentage 
  2.17  calculated under section 290.06, subdivision 2c, paragraph (e). 
  2.18     Subd. 3.  [EMPLOYERS.] A taxpayer is allowed a credit 
  2.19  against the tax imposed by this chapter for long-term care 
  2.20  insurance policy premiums paid during the taxable year as a 
  2.21  benefit to individuals who are employees of the taxpayer.  The 
  2.22  credit may not exceed the least of the following: 
  2.23     (1) $5,000; 
  2.24     (2) 20 percent of the amount paid by the taxpayer for 
  2.25  providing long-term care insurance policy coverage as part of 
  2.26  the employee benefit package; or 
  2.27     (3) $100 for each employee covered by a long-term care 
  2.28  policy provided or partially paid for by the employer. 
  2.29     Subd. 4.  [EXPIRATION.] This section expires effective for 
  2.30  taxable years beginning after December 31, 2005. 
  2.31     [EFFECTIVE DATE.] This section is effective for taxable 
  2.32  years beginning after December 31, 2000.