Text: HF00387 Text: HF00389 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11F NURSING HOME CARE
1 2 INSURANCE TAX CREDIT.
1 3 The taxes imposed under this division less the credits
1 4 allowed under section 422.12 shall be reduced by a nursing
1 5 home care insurance tax credit. The amount of the credit is
1 6 equal to fifty percent of the premium costs paid during the
1 7 tax year on each qualified long-term care insurance contract
1 8 that offers coverage to the taxpayer, the taxpayer's spouse or
1 9 dependent, or a parent or grandparent of the taxpayer or the
1 10 taxpayer's spouse. Any credit in excess of the tax liability
1 11 is nonrefundable. A deduction is not allowed for the tax year
1 12 for the amount of premium costs paid which is used in the
1 13 calculation of the credit taken under this section.
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. However, a long-term care
1 17 insurance contract that provides that before payment is made,
1 18 the beneficiary must be hospitalized prior to admittance to a
1 19 nursing home is not a qualified long-term care insurance
1 20 contract.
1 21 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
1 22 retroactively to January 1, 2001, for tax years beginning on
1 23 or after that date.
1 24 EXPLANATION
1 25 This bill provides a nursing home care insurance tax credit
1 26 under the individual income tax equal to 50 percent of the
1 27 premiums paid by the taxpayer on each qualified long-term care
1 28 insurance contract which covers the taxpayer, the taxpayer's
1 29 spouse or dependent, or a parent or grandparent of the
1 30 taxpayer or the taxpayer's spouse. Any excess credits are not
1 31 refundable. The insurance contract for which the credit is
1 32 allowed, per the Internal Revenue Code, is a renewable
1 33 insurance policy that has no cash surrender value and that
1 34 provides coverage for necessary diagnostic, preventive,
1 35 therapeutic, curing, treatment, mitigating, and rehabilitative
2 1 services to chronically ill individuals prescribed by a
2 2 licensed health care practitioner. However, if the insurance
2 3 contract has a provision that requires hospitalization prior
2 4 to admittance to a nursing home before payment is made, it is
2 5 not considered a qualified long-term care insurance contract.
2 6 A deduction for premium costs paid is not allowed to the
2 7 extent of the amount of the costs used in the calculation of
2 8 the credit taken.
2 9 The bill applies retroactively to January 1, 2001, for tax
2 10 years beginning on or after that date.
2 11 LSB 2222YH 79
2 12 mg/gg/8
Text: HF00387 Text: HF00389 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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