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PAG LIN
1 1 Section 1. NEW SECTION. 422.11 LONG-TERM CARE INSURANCE
1 2 CREDIT.
1 3 The tax imposed under this division, less the credits
1 4 allowed under sections 422.11A, 422.11B, 422.11C, 422.12, and
1 5 422.12B, shall be reduced by a long-term care insurance
1 6 credit. The amount of the credit is equal to the first one
1 7 hundred dollars paid in premiums by the taxpayer during the
1 8 tax year for the renewal of a long-term care insurance policy
1 9 or contract certified by the division of insurance pursuant to
1 10 chapter 249G which covers the taxpayer, taxpayer's spouse, or
1 11 dependent children. Any amounts paid in premiums for long-
1 12 term coverage that are claimed as a credit shall not be
1 13 deducted as a medical expense under section 422.9, subsection
1 14 2, or as health insurance costs of self-employed individuals
1 15 under section 162(l) of the Internal Revenue Code.
1 16 Any credit in excess of the tax liability for the tax year
1 17 is refundable. In lieu of claiming a refund, the taxpayer may
1 18 elect to have the overpayment shown on the taxpayer's final,
1 19 completed return credited to the tax liability for the
1 20 following tax year.
1 21 Sec. 2. This Act applies retroactively to January 1, 1995,
1 22 for tax years beginning on or after that date.
1 23 EXPLANATION
1 24 The bill grants individuals a $100 income tax credit for
1 25 premiums paid for the renewal of a certified long-term care
1 26 insurance policy or contract on the taxpayer or taxpayer's
1 27 spouse or dependent children. The policy or contract must be
1 28 certified by the division of insurance under the long-term
1 29 care asset preservation program. If the credit exceeds the
1 30 tax liability it can be refunded or applied to the next tax
1 31 year. The amount of the credit taken may not also be deducted
1 32 under the health insurance cost deduction provisions of the
1 33 income tax law.
1 34 The bill applies retroactively to January 1, 1995, for tax
1 35 years beginning on or after that date.
2 1 LSB 1219XL 76
2 2 mg/cf/24.2
Text: SSB00023 Text: SSB00025 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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