Text: SF00140 Text: SF00142 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11D LONG-TERM CARE INSURANCE
1 2 CREDIT.
1 3 The taxes imposed under this division less the credits
1 4 allowed under section 422.12 shall be reduced by a long-term
1 5 care insurance premium credit. The amount of the credit is
1 6 equal to fifteen percent, not to exceed three hundred fifty
1 7 dollars, of the premium costs paid during the tax year on each
1 8 qualified long-term care insurance contract that offers
1 9 coverage to the taxpayer or the taxpayer's spouse or
1 10 dependent. Any credit in excess of the tax liability is
1 11 nonrefundable. A deduction is not allowed for the tax year
1 12 for the amount of premium costs paid for which a credit under
1 13 this section is taken.
1 14 For purposes of this section, "qualified long-term care
1 15 insurance contract" means the same as defined in section 7702B
1 16 of the Internal Revenue Code.
1 17 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
1 18 retroactively to January 1, 1999, for tax years beginning on
1 19 or after that date.
1 20 EXPLANATION
1 21 The bill provides a long-term care insurance tax credit
1 22 under the individual income tax equal to 15 percent of the
1 23 premiums paid by the taxpayer on each qualified long-term care
1 24 insurance contract which covers the taxpayer or the taxpayer's
1 25 spouse or dependent. Each credit shall not exceed $350 and
1 26 any excess credits are not refundable. The insurance contract
1 27 for which the credit is allowed is a renewable insurance
1 28 policy that has no cash surrender value and that provides
1 29 coverage for necessary diagnostic, preventive, therapeutic,
1 30 curing, treatment, mitigating, and rehabilitative services to
1 31 chronically ill individuals prescribed by a licensed health
1 32 care practitioner. A deduction for premium costs paid is not
1 33 allowed to the extent the credit for those costs is taken.
1 34 The bill applies retroactively to January 1, 1999, for tax
1 35 years beginning on or after that date.
2 1 LSB 1372XS 78
2 2 mg/gg/8.1
Text: SF00140 Text: SF00142 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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