Bill > SF1337

This bill expands the long-term care insurance income tax credit in Minnesota by increasing the credit percentage and maximum allowable amounts for taxpayers who pay premiums for long-term care insurance policies. Currently, taxpayers can claim a 25% credit for premiums paid, with a maximum of $100 per qualified beneficiary and a total annual credit of $200 for joint filers and $100 for other filers. The proposed changes would replace these limits with a credit amount that matches the full premium paid (to the extent not already deducted from taxable income), increase the per-beneficiary maximum to $250, and raise the total annual credit to $500 for joint filers and $250 for other filers. For nonresidents or part-year residents, the credit will still be proportionally allocated based on their time in the state. These changes would take effect for taxable years beginning after December 31, 2024, potentially providing Minnesota taxpayers with a more substantial tax benefit for long-term care insurance premiums.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1337&ssn=0&y=2025