HF 1827

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; increasing the credit for 
  1.3             long-term care insurance; creating a credit for 
  1.4             employer provided long-term care insurance; directing 
  1.5             the commissioner of revenue to publicize the 
  1.6             availability of the long-term care credit; seeking 
  1.7             waivers from federal requirements; appropriating 
  1.8             money; amending Minnesota Statutes 2002, section 
  1.9             290.0672. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 290.0672, is 
  1.12  amended to read: 
  1.13     290.0672 [LONG-TERM CARE INSURANCE CREDIT.] 
  1.14     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.15  section, the following terms have the meanings given. 
  1.16     (b) "Employer" means an employer as defined in section 
  1.17  290.92, subdivision 1, paragraph (4). 
  1.18     (c) "Long-term care insurance" means a policy that: 
  1.19     (1) qualifies for a deduction under section 213 of the 
  1.20  Internal Revenue Code, disregarding the 7.5 percent income test; 
  1.21  or meets the requirements given in section 62A.46; or provides 
  1.22  similar coverage issued under the laws of another jurisdiction; 
  1.23  and 
  1.24     (2) has a lifetime long-term care benefit limit of not less 
  1.25  than $100,000; and 
  1.26     (3) has been offered in compliance with the inflation 
  1.27  protection requirements of section 62S.23. 
  2.1      (c) (d) "Qualified beneficiary" means the taxpayer or the 
  2.2   taxpayer's spouse.  
  2.3      (d) (e) "Premiums deducted in determining federal taxable 
  2.4   income" means the lesser of (1) long-term care insurance 
  2.5   premiums that qualify as deductions under section 213 of the 
  2.6   Internal Revenue Code; and (2) the total amount deductible for 
  2.7   medical care under section 213 of the Internal Revenue Code. 
  2.8      Subd. 2.  [CREDIT; INDIVIDUALS.] A taxpayer is allowed a 
  2.9   credit against the tax imposed by this chapter for long-term 
  2.10  care insurance policy premiums paid during the tax year.  The 
  2.11  credit for each policy equals 25 percent of premiums paid to the 
  2.12  extent not deducted in determining federal taxable income.  A 
  2.13  taxpayer may claim a credit for only one policy for each 
  2.14  qualified beneficiary.  A maximum of $100 $500 applies to each 
  2.15  qualified beneficiary.  The maximum total credit allowed per 
  2.16  year is $200 $1,000 for married couples filing joint returns and 
  2.17  $100 $500 for all other filers.  For a nonresident or part-year 
  2.18  resident, the credit determined under this section must be 
  2.19  allocated based on the percentage calculated under section 
  2.20  290.06, subdivision 2c, paragraph (e). 
  2.21     Subd. 3.  [CREDIT; EMPLOYERS.] (a) An employer is allowed a 
  2.22  credit against the tax imposed by this chapter equal to the 
  2.23  lesser of the following amounts: 
  2.24     (1) $5,000; 
  2.25     (2) 20 percent of the cost incurred by the employer in 
  2.26  providing long-term care insurance for its employees within an 
  2.27  employee benefit plan; or 
  2.28     (3) $100 for each employee covered by long-term care 
  2.29  insurance under the employer's benefit plan. 
  2.30     (b) For purposes of this subdivision, cost incurred by the 
  2.31  employer includes, but is not limited to, payments the employer 
  2.32  makes for: 
  2.33     (1) long-term care insurance premiums for employees; 
  2.34     (2) implementing and operating a payroll withholding system 
  2.35  for employee payment of long-term care insurance premiums under 
  2.36  the benefit plan; 
  3.1      (3) evaluating the terms of the long-term care policy or 
  3.2   policies to be offered to employees or provided as part of the 
  3.3   benefit plan; and 
  3.4      (4) publicizing and explaining the long-term care insurance 
  3.5   benefit to employees. 
  3.6      [EFFECTIVE DATE.] This section is effective for taxable 
  3.7   years beginning after December 31, 2003. 
  3.8      Sec. 2.  [PUBLIC OUTREACH ON LONG-TERM CARE CREDIT.] 
  3.9      (a) The commissioner of revenue shall publicize the 
  3.10  availability and benefits of the credit under Minnesota 
  3.11  Statutes, section 290.0672, as well as other federal and state 
  3.12  tax incentives, for long-term care insurance to individuals and 
  3.13  employers with the goal of increasing use of the credit.  The 
  3.14  commissioner's efforts may include, but are not limited to: 
  3.15     (1) publishing materials on the benefits of the credit on 
  3.16  the state's Web site; 
  3.17     (2) preparing and making available informational materials 
  3.18  for individuals, employers, and the media and for distribution 
  3.19  at tax preparation Web sites; 
  3.20     (3) making best efforts to obtain placement of public 
  3.21  service announcements on the credit on: 
  3.22     (i) radio; 
  3.23     (ii) broadcast television; 
  3.24     (iii) cable television; 
  3.25     (iv) Web sites; or 
  3.26     (v) print and other media; and 
  3.27     (4) obtaining news coverage of the credit and its benefits 
  3.28  in print, broadcast, and other media. 
  3.29     (b) $....... is appropriated to the commissioner of revenue 
  3.30  from the general fund for fiscal years 2004 and 2005 for 
  3.31  purposes of this subdivision. 
  3.32     [EFFECTIVE DATE.] This section is effective the day 
  3.33  following final enactment. 
  3.34     Sec. 3.  [FEDERAL WAIVERS AND APPROVAL; LONG-TERM CARE 
  3.35  INSURANCE PARTNERSHIP.] 
  3.36     The commissioner of human services shall seek any federal 
  4.1   waivers and approvals necessary to establish a long-term care 
  4.2   insurance partnership program.  The program must encourage the 
  4.3   purchase of private long-term care insurance by permitting the 
  4.4   insured to retain assets in excess of those otherwise permitted 
  4.5   for medical assistance eligibility, if the insured later 
  4.6   exhausts the private long-term care insurance benefits.  The 
  4.7   commissioner shall notify the chairs of the house and senate 
  4.8   committees with jurisdiction over health and human services 
  4.9   policy and financing, and the chairs of the house and senate 
  4.10  committees with jurisdiction over insurance, on whether federal 
  4.11  waivers and approvals are obtained. 
  4.12     [EFFECTIVE DATE.] This section is effective the day 
  4.13  following final enactment.