Bill
HB 5439
Creates a state tax credit that offsets premiums for qualifying long-term care insurance, encouraging individuals to buy/keep LTC policies and impacting eligible filers.
HB 5439 – Summary in Brief
Overview
- Title: AN ACT ESTABLISHING A TAX CREDIT FOR PREMIUM PAYMENTS FOR CERTAIN LONG-TERM CARE INSURANCE POLICIES
- Purpose (as indicated by the title): To establish a tax credit for premium payments made on qualifying long-term care (LTC) insurance policies.
- Status and procedure: Introduced March 14, 2025. Read first time and referred to committee on April 7, 2025. Listed as REF. TO JOINT COMM. ON Insurance and Real Estate initially, with subsequent referral noted to Licensing & Administrative Procedures. Earlier action shows a referral to the Joint Committee on Insurance and Real Estate on January 17, 2025.
What the bill is intended to do
- Create a state-level tax credit intended to incentivize individuals to purchase and maintain long-term care insurance by offsetting part of the premium costs.
- The credit is tied specifically to premium payments for “certain long-term care insurance policies,” implying eligibility will depend on qualifying policy features or definitions established in the bill text.
Key provisions and details to confirm in the full bill (not provided in the summary)
- Eligibility and definitional scope: Which LTC policies qualify (e.g., certain benefit triggers, inflation protection, riders) and which taxpayers can claim the credit (individuals, couples, filers of specific tax statuses).
- Credit amount and structure: The percentage or fixed amount of premiums that can be credited, any caps per policy or per taxpayer, whether the credit is refundable or nonrefundable, and whether unused credits can be carried forward.
- Interaction with other credits/deductions: How this credit interacts with existing LTC-related incentives or other state tax provisions.
- Limitations and exclusions: Income thresholds, policy age/term limits, or other restrictions (e.g., if the credit phases out at higher incomes).
- Administration and claiming: How taxpayers would claim the credit, required documentation, and any oversight or reporting provisions for insurers or the Department of Revenue/Tax Authority.
- Sunset or renewal: Whether the credit is temporary or permanent, and any review provisions.
Who would be affected
- Primary beneficiaries: Taxpayers who purchase qualifying LTC insurance policies and meet eligibility criteria.
- Potential secondary effects: LTC insurers and agents may experience changes in policy sales, product design, or marketing strategies to meet qualifying criteria.
Procedural and timeline notes
- 2025-01-17: Referral to Joint Committee on Insurance and Real Estate
- 2025-03-14: Filed
- 2025-04-07: Read first time; referred to Licensing & Administrative Procedures
- These steps indicate usual initial committee review and potential for amendments before any floor action.
Next steps for readers
- Review the full bill text to confirm precise definitions, credit mechanics, and fiscal impact.
- Monitor committee hearings for amendments, fiscal notes, and testimony from stakeholders.
- Consider questions on budget impact, eligibility, and how the credit would interact with existing LTC planning options.
Compiled from official sources — confirm details with the bill’s official record.
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