Bill > HF2176

This bill expands the long-term care insurance tax credit in Minnesota by increasing the credit percentage and maximum allowable amounts. Specifically, the bill modifies the existing tax credit for long-term care insurance policy premiums, changing the credit from a flat 25 percent to an unspecified "amount" of premiums paid. The maximum credit per qualified beneficiary increases from $100 to $250, and the total annual credit limits are raised from $200 to $500 for married couples filing jointly and from $100 to $250 for other filers. The credit continues to apply only to premiums not already deducted from taxable income, and taxpayers can still claim only one policy per qualified beneficiary. For non-residents or part-year residents, the credit will continue to be proportionally allocated based on existing state tax regulations. The changes will take effect for taxable years beginning after December 31, 2024, providing taxpayers with a more generous tax incentive for purchasing long-term care insurance and potentially making such insurance more affordable for Minnesota residents.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2176&ssn=0&y=2025