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Maryland Enacts Tax Credit for LTC Insurance

Wed, 06/07/2000 - 12:00am — Karen Stevenson
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SB 171, The Income Tax Credit for Long-Term Care Insurance Premiums, was signed by the Governor on May 11. This bill will allow for a credit against the State income tax for 100% of long-term care insurance premiums paid by the individual for the individual or the individual's spouse, parent, stepparent, child, or stepchild if the insured is a Maryland resident. The credit is limited to $500 for each insured and to one taxable year for each insured, and only applies to policies purchased July 1, 2000 or later.

The bill is not as comprehensive as some proponents had hoped it would be, but does allow a credit to first-time buyers of long term care insurance.

SB 171, The Income Tax Credit for Long-Term Care Insurance Premiums, was signed by the Governor on May 11. This bill will allow for a credit against the State income tax for 100% of long-term care insurance premiums paid by the individual for the individual or the individual's spouse, parent, stepparent, child, or stepchild if the insured is a Maryland resident. The credit is limited to $500 for each insured and to one taxable year for each insured, and only applies to policies purchased July 1, 2000 or later.

The bill is not as comprehensive as some proponents had hoped it would be, but does allow a credit to first-time buyers of long term care insurance.