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Bill

A 7654

Raises tax credits for long-term care insurance from twenty percent to fifty percent

2025 Regular Session Introduced by Steve Stern

Raises the long-term care insurance premium tax credit from 20% to 50%, reducing after-tax costs for buyers and potentially boosting uptake; details on caps/eligibility pending.

REFERRED TO WAYS AND MEANS
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WeVote Research Nonpartisan
Bill Summary · A 7654

Summary of Bill A 7654

Overview

  • Bill Number: A 7654
  • Title: Raises tax credits for long-term care insurance from twenty percent to fifty percent
  • Sponsor (primary): Steve Stern
  • Introduction Date: April 4, 2025
  • Status: Referred to Ways and Means (committee stage)
  • Classification: Legislative bill

Purpose and intent

  • The bill seeks to increase the state tax credit for premiums paid for long-term care (LTC) insurance from 20% to 50%.
  • By expanding the credit, the measure is intended to incentivize individuals to purchase LTC insurance and provide greater tax relief to policyholders.

Key provisions (as stated in available information)

  • Credit rate increase: The tax credit for LTC insurance premiums would rise from 20% to 50% of eligible premiums.
  • Eligibility and scope: The summary provided does not specify detailed eligibility criteria, caps, sunset provisions, income restrictions, or whether the credit is refundable or nonrefundable. Those specifics would appear in the bill text.
  • Program administration: The summary does not describe administration or verification mechanisms beyond the implication that the credit applies to LTC insurance premiums.

Who would be affected

  • Primary beneficiaries: Individuals who purchase long-term care insurance, as they would be eligible for a substantially larger tax credit on premiums.
  • Secondary effects: Insurance providers and state revenue/finances could be affected due to changes in the cost of the credit, as well as any administrative costs associated with implementing and verifying the credit.

Procedural and timeline aspects

  • Committee assignment: Referred to the Ways and Means committee, indicating the bill is at an early stage and will be evaluated for fiscal impact and revenue considerations as part of the budget process.
  • Legislative actions to date: On April 4, 2025, the bill was referred to Ways and Means (listed twice in the provided actions, which likely reflects a formatting duplication in the record).

Related legislation

  • Related bills from prior sessions include A 4417, A 2643, A 2341, A 6643, A 4694, A 1978, A 2782, A 6320, and A 3548. These prior-session bills suggest ongoing legislative interest in LTC insurance tax incentives and similar credit structures.

Potential impact and considerations (as of available information)

  • The proposed increase to a 50% credit could materially reduce after-tax costs for LTC insurance premiums, potentially boosting uptake among residents.
  • Fiscal impact to the state would depend on the final text (caps, eligibility, sunset provisions) and anticipated uptake; the Ways and Means committee will typically evaluate revenue effects and budget implications.
  • Detailed provisions (eligibility limits, definitions of “eligible premiums,” interaction with other credits, and any sunset or cap) are not provided here and would be essential to assess full impact.

Next steps for readers

  • Monitor the bill’s progress in the Ways and Means committee and any fiscal notes or hearings that explain revenue impact and eligibility details.
  • Review the full bill text when available to understand caps, eligibility rules, whether the credit is refundable, and any sunset provisions.
  • Compare with related bills from prior sessions (A 4417, A 2643, A 2341, etc.) to see if there are consistent policy approaches or changes.

Compiled from official sources — confirm details with the bill’s official record.

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