Report Title:

Long-Term Care Insurance; Tax Credit

Description:

Provides a tax credit for premiums paid for a long-term care insurance policy.

HOUSE OF REPRESENTATIVES

H.B. NO.

1364

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO LONG-TERM CARE INSURANCE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Tax credits; long-term care insurance. (a) Any taxpayer who files an individual income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual net income tax.

(b) The tax credit claimed shall be equal to the premium amount paid for "long-term care insurance" as that term is defined under section 431:10H-104. The tax credit shall not exceed $250.

(c) If a deduction is taken under section 235-55.6, relating to expenses for household and dependent care services, or any other deduction that involves the expense paid for a long-term care insurance premium, no tax credit shall be allowed for that portion of the premium amount for which a deduction is claimed.

(d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(e) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

(f) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.

(g) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2002.

INTRODUCED BY:

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