Bill Text: HI HB304 | 2013 | Regular Session | Introduced

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Bill Title: Long-Term Care Insurance; Tax Credit

Spectrum: Moderate Partisan Bill (Republican 6-1)

Status: (Introduced - Dead) 2013-01-22 - Referred to CPC, FIN, referral sheet 3 [HB304 Detail]

Download: Hawaii-2013-HB304-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	304
TWENTY-SEVENTH LEGISLATURE, 2013
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.  According to the United States Census Bureau, the estimated total population of Hawaii in 2011 was 1,378,129 people.  Of these people 202,585, or 14.7 per cent, of our population was composed of persons age 65 years and older.  While many of our kupuna live active and healthy lifestyles, the legislature finds that too many Hawaii residents must bear the burden of providing long-term care for their aging loved ones, without any assistance.

Long-term care insurance is meant to provide relief to these caregivers by providing services to those who need care as the result of serious trauma or a chronic disease, such as Alzheimer's or Parkinson's.  The legislature acknowledges the steep cost of this insurance and finds there is a need to help ease the financial burden on such caregivers.

The purpose of this Act is to create a long-term care tax credit to encourage our aging population and the general public

to invest in long-term care insurance.

     SECTION 2.  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 individual taxpayer who:

     (1)  Is subject to this chapter;

     (2)  Files an individual income tax return for a taxable year; and

     (3)  Is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for Hawaii state individual income tax purposes;

may claim a long-term care credit against the taxpayer's net individual income tax liability for the taxable year for which the individual's income tax return is being filed; provided that an individual who has no income taxable under this chapter, and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for Hawaii state individual income tax purposes may claim this credit.

     (b)  The tax credit shall apply to taxpayers with an adjusted gross income of:

     (1)  $100,000 or less for a taxpayer filing a single return

 

or a married person filing separately;

     (2)  $150,000 or less for a taxpayer filing as a head of household; or

(3)  $250,000 or less for a taxpayer filing a joint return or as a surviving spouse.

     (c)  The tax credit for an individual taxpayer, including a husband and wife filing a joint return, shall be an amount equal to ten per cent of the cost of any long-term care insurance premium payments made by the individual taxpayer for the taxable year in which the payments were made, provided that a husband and wife filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled under this section had a joint return been filed.

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

     (d)  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.

 

     (e)  The tax credit applies to premium payments for a long-

term care insurance contract that covers:

     (1)  The taxpayer;

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

     (3)  The taxpayer's spouse;

     (4)  A son or daughter of the taxpayer;

     (5)  A stepson or stepdaughter of the taxpayer;

     (6)  The father or mother of the taxpayer; or

     (7)  A stepfather or stepmother of the taxpayer.

     (f)  No refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

     (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 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2013.

 

INTRODUCED BY:	_____________________________
	_____________________________

 

Report Title:

Long-Term Care Insurance; Tax Credit

 

Description:

Provides tax credit to resident taxpayers for long-term care insurance premiums at 10% of the amount of the insurance premium paid.  Prohibits a medical expense deduction for long-term care insurance cost if long-term care tax credit is claimed.

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.