Sec. 4. 24-A MRSA §5055, sub-§§4 and 5, as enacted by PL 1989, c. 556, Pt. B, §4, are amended to read:

4. Life insurance riders. With respect to life insurance riders that qualify as long-term care, nursing home care or home health care policies, the tax incentives provided by this section shall apply only to that portion of the premium attributable to the rider.

5. Provision of records. Any person who holds a group long- term care, nursing home care or home health care policy pursuant to or under which premiums are paid in whole or in part by certificate holders or other 3rd parties shall provide to those certificate holders or 3rd parties adequate and timely records to enable those persons to have knowledge of the tax reduction to which they may be entitled under subsection 2 and under Title 36, section 5122.

Sec. 5. 36 MRSA §5122, sub-§2, ¶G, as amended by PL 1995, c. 639, §15, is further amended to read:

G. For income tax years commencing on or after January 1, 1989, an amount equal to the total premiums spent for insurance policies for long-term care, nursing home care or home health care that have been certified by the Superintendent of Insurance as complying with Title 24-A, chapter 68;

Sec. 6. Application. This Act applies to taxable years beginning on or after January 1, 2000.

SUMMARY

This bill makes the laws concerning long-term care insurance conform with federal law by allowing premiums paid for long-term care, nursing home care and home health care insurance policies to be deductible for state income tax purposes.