House File 2055 - Introduced



                                       HOUSE FILE       
                                       BY  FREVERT


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to an income tax deduction for costs of long=
  2    term care insurance contracts and including an effective and
  3    retroactive applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5584HH 81
  6 mg/je/5

PAG LIN



  1  1    Section 1.  Section 422.7, subsection 29, Code Supplement
  1  2 2005, is amended to read as follows:
  1  3    29.  Subtract, to the extent not otherwise deducted in
  1  4 computing adjusted gross income, the amounts paid by the
  1  5 taxpayer for the purchase of health benefits coverage or
  1  6 insurance, including a qualified long=term care insurance
  1  7 contract, for the taxpayer or taxpayer's spouse or dependent.
  1  8 For purposes of this subsection, "qualified long=term care
  1  9 insurance contract" means the same as defined in section 7702B
  1 10 of the Internal Revenue Code.
  1 11    Sec. 2.  EFFECTIVE AND RETROACTIVE APPLICABILITY DATE.
  1 12 This Act, being deemed of immediate importance, takes effect
  1 13 upon enactment and applies retroactively to January 1, 2006,
  1 14 for tax years beginning on or after that date.
  1 15                           EXPLANATION
  1 16    This bill allows a taxpayer to deduct, in determining net
  1 17 income, amounts paid for a qualified long=term care insurance
  1 18 contract for the taxpayer or the taxpayer's spouse or
  1 19 dependent.  This deduction would otherwise be an itemized
  1 20 deduction.  The insurance contract, per the Internal Revenue
  1 21 Code, is a renewable insurance policy that has no cash
  1 22 surrender value and that provides coverage for necessary
  1 23 diagnostic, preventive, therapeutic, curing, treatment,
  1 24 mitigating, and rehabilitative services to chronically ill
  1 25 individuals prescribed by a licensed health care practitioner.
  1 26 LSB 5584HH 81
  1 27 mg:nh/je/5