Bill > S04698

This bill eliminates two key restrictions on the long-term care insurance tax credit in New York state: the $1,500 maximum credit amount and the gross income limit of $250,000. Currently, residents can claim a tax credit equal to 20% of premiums paid for qualifying long-term care insurance policies, but previously this credit was capped at $1,500 and only available to taxpayers with adjusted gross income below $250,000. Under the new legislation, there will be no dollar limit on the credit amount, and taxpayers with higher incomes can also claim the credit. To qualify, individuals must still purchase or maintain a long-term care insurance policy that meets specific standards outlined in the state insurance law. If the credit exceeds the taxpayer's tax liability in a given year, the excess can still be carried forward to offset taxes in future years. The bill is set to take effect for taxable years beginning on or after January 1, 2025, providing more generous tax relief for New York residents purchasing long-term care insurance.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S4698