HF 739

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; income; providing a credit for 
  1.3             long-term care insurance premiums; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0672] [LONG-TERM CARE INSURANCE CREDIT.] 
  1.7      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.8   section, the following terms have the meanings given. 
  1.9      (b) "Long-term care insurance" means: 
  1.10     (1) a policy that qualifies for a deduction under section 
  1.11  213 of the Internal Revenue Code, disregarding the 7.5 percent 
  1.12  income test; 
  1.13     (2) a policy that meets the requirements given in section 
  1.14  62A.46; or 
  1.15     (3) a policy providing similar coverage issued under the 
  1.16  laws of another jurisdiction.  
  1.17     (c) "Qualified beneficiary" means the taxpayer or the 
  1.18  taxpayer's spouse.  
  1.19     (d) "Premiums deducted in determining federal taxable 
  1.20  income" means the lesser of (1) long-term care insurance 
  1.21  premiums that qualify as deductions under section 213 of the 
  1.22  Internal Revenue Code; and (2) the total amount deductible for 
  1.23  medical care under section 213 of the Internal Revenue Code. 
  1.24     Subd. 2.  [CREDIT.] A taxpayer is allowed a credit against 
  1.25  the tax imposed by this chapter for long-term care insurance 
  2.1   policy premiums paid during the tax year.  The credit for each 
  2.2   policy equals the lesser of (1) 25 percent of premiums paid to 
  2.3   the extent not deducted in determining federal taxable income; 
  2.4   or (2) $100.  A taxpayer may claim a credit for only one policy 
  2.5   for each qualified beneficiary.  Only one credit may be claimed 
  2.6   by any taxpayer for each policy.  The maximum total credit 
  2.7   allowed per year is $200 for married couples filing joint 
  2.8   returns and $100 for all other filers.  For a nonresident or 
  2.9   part-year resident, the credit determined under this section 
  2.10  must be allocated based on the percentage calculated under 
  2.11  section 290.06, subdivision 2c, paragraph (e). 
  2.12     Sec. 2.  [EFFECTIVE DATE.] 
  2.13     Section 1 is effective for taxable years beginning after 
  2.14  December 31, 1996.