290.0672 Long-term care insurance credit.
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Long-term care insurance" means a policy that:
(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding the 7.5 percent income test; or meets the requirements given in section 62A.46; or provides similar coverage issued under the laws of another jurisdiction; and
(2) does not have a lifetime long-term care benefit limit of less than $100,000; and
(3) includes inflation protection that meets or exceeds the inflation protection requirements of the long-term care insurance model regulation cited under section 7702B(g)(2)(A)(i)(x) of the Internal Revenue Code.
(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) long-term care insurance premiums that qualify as deductions under section 213 of the Internal Revenue Code; and (2) the total amount deductible for medical care under section 213 of the Internal Revenue Code.
Subd. 2. Credit. A taxpayer is allowed a credit against the tax imposed by this chapter for long-term care insurance policy premiums paid during the tax year. The credit for each policy equals the lesser of (1) 25 percent of premiums paid to the extent not deducted in determining federal taxable income; or (2) $100. A taxpayer may claim a credit for only one policy for each qualified beneficiary. Only one credit may be claimed by any taxpayer for each policy. The maximum total credit allowed per year is $200 for married couples filing joint returns and $100 for all other filers. For a nonresident or part-year resident, the credit determined under this section must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
HIST: 1997 c 231 art 5 s 7
* NOTE: This section, as added by Laws 1997, chapter 231, *article 5, section 7, is effective for taxable years beginning *after December 31, 1998. Laws 1997, chapter 231, article 5, *section 20.
Official Publication of the State of Minnesota
Revisor of Statutes