2006 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) has a lifetime long-term care benefit limit of not less than $100,000; and
(3) has been offered in compliance with the inflation protection requirements of section
62S.23.
(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 25 percent of premiums paid to the extent not deducted in determining federal taxable
income. A taxpayer may claim a credit for only one policy for each qualified beneficiary. A
maximum of $100 applies to each qualified beneficiary. 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).
History: 1997 c 231 art 5 s 7; 2000 c 490 art 4 s 20,21