Text: SF00254 Text: SF00256 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11F SENIOR LIVING 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 senior
1 5 living insurance tax credit. The amount of the credit is
1 6 equal to fifty 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, the taxpayer's spouse or dependent,
1 10 or a parent or grandparent of the taxpayer or the taxpayer's
1 11 spouse. Any credit in excess of the tax liability is
1 12 refundable. A deduction is not allowed for the tax year for
1 13 the amount of premium costs paid which is used in the
1 14 calculation of the credit taken under this section.
1 15 For purposes of this section, "qualified long-term care
1 16 insurance contract" means the same as defined in section 7702B
1 17 of the Internal Revenue Code.
1 18 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
1 19 retroactively to January 1, 2001, for tax years beginning on
1 20 or after that date.
1 21 EXPLANATION
1 22 This bill provides a senior living insurance tax credit
1 23 under the individual income tax equal to 50 percent of the
1 24 premiums paid by the taxpayer on each qualified long-term care
1 25 insurance contract which covers the taxpayer, the taxpayer's
1 26 spouse or dependent, or a parent or grandparent of the
1 27 taxpayer or the taxpayer's spouse. Each credit shall not
1 28 exceed $350 and any excess credits are refundable. The
1 29 insurance contract for which the credit is allowed, per the
1 30 Internal Revenue Code, is a renewable insurance policy that
1 31 has no cash surrender value and that provides coverage for
1 32 necessary diagnostic, preventive, therapeutic, curing,
1 33 treatment, mitigating, and rehabilitative services to
1 34 chronically ill individuals prescribed by a licensed health
1 35 care practitioner. A deduction for premium costs paid is not
2 1 allowed to the extent of the amount of the costs used in the
2 2 calculation of the credit taken.
2 3 The bill applies retroactively to January 1, 2001, for tax
2 4 years beginning on or after that date.
2 5 LSB 1457SS 79
2 6 mg/gg/8
Text: SF00254 Text: SF00256 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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