HOUSE OF REPRESENTATIVES

H.B. NO.

18

TWENTY-EIGHTH LEGISLATURE, 2015

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO LONG-TERM CARE.

 

 

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-    Long-term care tax credit.  (a)  Each taxpayer that files an income tax return for a taxable year may claim a non-refundable, long-term care tax credit under this section against the taxpayer's net income tax liability; provided that no long-term care tax credit shall be claimed by an individual taxpayer who is claimed or is otherwise eligible to be claimed as a dependent by another taxpayer for Hawaii state individual income tax purposes. 

     (b)  The tax credit may be claimed as follows:

     (1)  For individual taxpayers, the credit shall apply to taxpayers with an adjusted gross income of:

         (A)  $         or less for a taxpayer filing a single return;

         (B)  $         or less for a married taxpayer filing separately;

         (C)  $         or less for a taxpayer filing as a head of household; or

         (D)  $         or less for a married taxpayer filing a joint return; and

     (2)  For corporate taxpayers, the credit shall apply only to those taxpayers that are employers and that offer long-term care insurance as part of the employer's benefit plan.

(c)  The tax credit shall be an amount equal to the lesser of the following amounts:

(1)  $        for an individual taxpayer;

(2)  $        for a corporate taxpayer; or

(3)           per cent of the cost of any long-term care insurance premium payments made by the taxpayer for the taxable year in which the payments were made;

provided that married individual taxpayers filing separate tax returns for a taxable year for which a joint return could have been filed shall claim only the tax credit to which they would have been entitled under this section had a joint return been filed.

     (d)  The long-term care tax credit shall apply to premium payments for a long-term care insurance contract that covers an individual who is the taxpayer or who is an employee of the taxpayer, as applicable, or:

(1)  The individual's dependent as defined in section 152 of the Internal Revenue Code of 1986, as amended;

(2)  The individual's spouse;

(3)  A son or daughter of the individual;

(4)  A stepson or stepdaughter of the individual;

(5)  The father or mother of the individual; or

(6)  A stepfather or stepmother of the individual.

     (e)  If a deduction is taken under this chapter pursuant to section 213 (with respect to medical, dental, etc., expenses) of the Internal Revenue Code of 1986, as amended, no tax credit shall be allowed for that portion of the cost of long-term care insurance for which the deduction was taken.

     (f)  For the purposes of this section, "long-term care insurance" shall have the same meaning as defined in section 431:10H-104.

(g)  All claims, including any amended claims, for tax credits under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after July 1, 2050.


 


 

Report Title:

Long-term Care; Tax Credit

 

Description:

Provides tax credits to individual and corporate taxpayers for long-term care insurance premiums.  (HB18 HD2)

 

 

 

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