Bill > SF1399

This bill increases the maximum long-term care insurance tax credit in Minnesota, specifically raising the per-beneficiary credit limit from $100 to $250, and increasing the total annual credit limit from $200 to $500 for married couples filing joint returns, and from $100 to $250 for other taxpayers. The existing tax credit allows taxpayers to claim a 25% credit on long-term care insurance premiums paid during the tax year, with the credit calculated on premiums not already deducted from taxable income. Taxpayers can claim the credit for only one policy per qualified beneficiary, and the credit is prorated for nonresidents or part-year residents based on their time in the state. The changes to the tax credit will take effect for taxable years beginning after December 31, 2024, providing taxpayers with a more substantial tax benefit for long-term care insurance premiums and potentially making such insurance more affordable and attractive.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1399&ssn=0&y=2025