1997 Minnesota Statutes

     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.