Sec. C-1. 36 MRSA §2525, sub-§1, as enacted by PL 1989, c. 556, Pt. B, §6, is amended to read:
1. Credit. A taxpayer under this chapter constituting an employing unit is allowed a credit against the tax imposed by this chapter for each taxable year that begins on or after July 10, 1989 and before January 1, 2000 equal to the lowest of the following:
A. Five thousand dollars;
B. Twenty percent of the costs incurred by the taxpayer in providing long-term care policy coverage as part of a benefit package; or
C. One hundred dollars for each employee covered by an employer-provided long-term care policy.
Sec. C-2. 36 MRSA §2525-A is enacted to read:
§2525-A. Employer-provided long-term care benefits on and after January 1, 2000
1. Credit. A taxpayer under this chapter constituting an employing unit is allowed a credit against the tax imposed by this chapter for each taxable year that begins on or after January 1, 2000 equal to the lowest of the following:
A. Five thousand dollars;
B. Twenty percent of the costs incurred by the taxpayer in providing qualified long-term care insurance contract coverage as part of a benefit package; or
C. One hundred dollars for each employee covered by an employer-provided long-term care insurance contract.
2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. "Employing unit" has the same meaning as in Title 26, section 1043.
B. "Qualified long-term care insurance contract" means a qualified long-term care insurance contract as defined in the Code, Section 7702B(b).
3. Limitation. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of tax otherwise due under this chapter. Any unused credit may be carried over to the following year or years for a period not to exceed 15 years.
Sec. C-3. 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 and before January 1, 2000, an amount equal to the total premiums spent for insurance policies for long-term care that have been certified by the Superintendent of Insurance as complying with Title 24-A, chapter 68;
Sec. C-4. 36 MRSA §5122, sub-§2, ¶J, as corrected by RR 1997, c. 2, §59, is amended to read:
J. Any amount constituting a qualified withdrawal from an account established pursuant to Title 20-A, chapter 417-E and used for paying higher education expenses; and
Sec. C-5. 36 MRSA §5122, sub-§2, ¶K, as reallocated by RR 1997, c. 2, §60 and affected by §61, is amended to read:
K. For income tax years beginning on or after January 1, 1997, all items of income, gain, interest, dividends, royalties and other income of a financial institution subject to the tax imposed by section 5206, to the extent that those items are passed through to the taxpayer for federal income tax purposes, including, if the financial institution is an S corporation, the taxpayer's pro rata share and, if the financial institution is a partnership or limited liability company, the taxpayer's distributive share. A subtraction may not be made under this paragraph for:
(1) Income of the taxpayer earned on interest-bearing or similar accounts of the taxpayer at a financial institution as a customer of that financial institution;
(2) Any dividends or other distributions with respect to a taxpayer's ownership interest in a financial institution; and
(3) Any gain recognized on the disposition by the taxpayer of an ownership interest in a financial institution. ; and
Sec. C-6. 36 MRSA §5122, sub-§2, ¶L is enacted to read:
L. For income tax years beginning on or after January 1, 2000, an amount equal to the total premiums spent for qualified long-term care insurance contracts as defined in the Code, Section 7702B(b), as long as the amount subtracted is reduced by the long-term care premiums claimed as an itemized deduction pursuant to Section 5125.
Sec. C-7. 36 MRSA §5217-B, sub-§1, as enacted by PL 1989, c. 556, Pt. B, §11, is amended to read:
1. Credit. A taxpayer constituting an employing unit is allowed a credit against the tax imposed by this Part for each taxable year that begins on or after July 10, 1989 and before January 1, 2000 equal to the lowest of the following:
A. Five thousand dollars;
B. Twenty percent of the costs incurred by the taxpayer in providing long-term care policy coverage as part of a benefit package; or
C. One hundred dollars for each employee covered by an employer-provided long-term care policy.
Sec. C-8. 36 MRSA §5217-C is enacted to read:
§5217-C. Employer-provided long-term care benefits on and after January 1, 2000
1. Credit. A taxpayer constituting an employing unit is allowed a credit against the tax imposed by this Part for each taxable year that begins on or after January 1, 2000 equal to the lowest of the following:
A. Five thousand dollars;
B. Twenty percent of the costs incurred by the taxpayer in providing qualified long-term care insurance contract coverage as part of a benefit package; or
C. One hundred dollars for each employee covered by an employer-provided long-term care insurance contract.
2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. "Employing unit" has the same meaning as in Title 26, section 1043.
B. "Qualified long-term care insurance contract" means a qualified long-term care insurance contract as defined in the Code, Section 7702B(b).
3. Limitation. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of tax otherwise due under this Part. Any unused credit may be carried over to the following year or years for a period not to exceed 15 years.
Sec. C-9. Application. Notwithstanding the provisions of this Part, a taxpayer who purchased a long-term care policy prior to the effective date of this Act that was certified by the Bureau of Insurance as deductible for Maine income tax purposes may continue to deduct the premiums for the certified policy to the same extent as was allowed prior to the enactment of this Act, as long as the amount subtracted is reduced by the long-term care premiums claimed as an itemized deduction pursuant to the Maine Revised Statutes, Title 36, section 5125.
Effective September 18, 1999, unless otherwise indicated.
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