FOR IMMEDIATE RELEASE
April 18, 2002
Contact: Rep. Michael P. Kahikina
Phone: (808) 586-8465
LONG-TERM CARE TAX CREDIT TO BE RESURRECTED
As prospects fade for the Care Plus long-term care plan with its mandatory $10 per month fee, House-Senate conferees will be presented with an amended holdover bill that would give residents who purchase private, long-term care insurance an income tax credit, according to Rep. Michael Kahikina (D - Kalaeloa to Waianae), chair of the House's conference committee on the issue.
Senate Bill 1534 passed both houses last session and was languishing in conference committee. Kahikina said the bill will be and presented to conferees with a proposed Conference Draft 1, incorporating the provisions of the original House bill authored by Rep. Bob Nakasone (D - Kahului, Wailuku).
The proposed draft provides for an income tax credit of $2,500 or 50 percent of the total premiums paid during the taxable year, whichever is less. It would allow an individual who purchases long-term care insurance for a spouse, dependent, mother, or father to claim the credit. The benefits would be determined by the plan selected.
"The estimated impact on the State's tax collections would be less than $5 million per year initially," Kahikina said, "but this gives those folks who claim to be concerned about the coming long-term care crisis a chance to prove it."
The proposed draft will be discussed at the conference committee's scheduled meeting tomorrow beginning at 4:00 p.m. in Capitol Conference Room 229.
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