SF1399 (Legislative Session 94 (2025-2026))
Maximum long-term care insurance credit increase
Related bill: HF355
AI Generated Summary
Purpose
- To amend Minnesota tax law so that the long-term care insurance premium credit for individual income tax is changed, including how the credit is calculated and limited.
Main Provisions
- Credit basis: A taxpayer may claim a credit against the tax for long-term care insurance policy premiums paid during the tax year.
- Credit rate: The credit equals 25 percent of premiums paid, to the extent that those premiums were not already deducted when determining taxable net income.
- Policy limit: A credit may be claimed for only one policy per qualified beneficiary.
- Per-beneficiary maximum: The credit per qualified beneficiary is capped at $100,250.
- Total annual limit: The combined credit for a taxpayer is limited to $200,500 for married couples filing jointly, or $100,250 for all other filers.
- Nonresident/part-year resident allocation: For nonresidents or part-year residents, the credit is allocated based on a percentage determined under Minnesota Statutes section 290.06, subdivision 2c, paragraph e.
- Scope: Applies to premiums paid for long-term care insurance policies during the tax year and is a credit against the individual income tax.
Significant Changes to Existing Law
- Establishes new maximum credit amounts (per-beneficiary and total) for the long-term care insurance premium credit.
- Specifies that the credit is only for one policy per qualified beneficiary.
- Introduces allocation rules for nonresidents and part-year residents to determine their credit.
Administrative Notes
- The provision references Minnesota Statutes 2024, section 290.0672, subdivision 2, and uses the same framework for qualification, calculation, and allocation (including connection to nonresident-part-year resident rules).
Relevant Terms - long-term care insurance credit - premiums - 25 percent - determined against taxable net income - qualified beneficiary - policy - per-beneficiary maximum - $100,250 - total annual limit - $200,500 - married filing jointly - nonresident - part-year resident - allocation - Minnesota Statutes 2024 - section 290.0672, subdivision 2 - tax year - taxable net income
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 13, 2025 | Senate | Action | Introduction and first reading | ||
| February 13, 2025 | Senate | Action | Referred to | Taxes | |
| February 20, 2025 | Senate | Action | Author added |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 290.0672, subdivision 2, regarding the long-term care insurance credit, including the credit amount (25% of premiums) and per-beneficiary and per-filer maximums.",
"modified": [
"Modifies the long-term care insurance credit provisions, including per-beneficiary and total credit limits."
]
},
"citation": "290.0672",
"subdivision": "Subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill allocates the long-term care insurance credit for nonresidents or part-year residents based on the percentage under Minnesota Statutes section 290.06, subdivision 2c, paragraph e.",
"modified": [
"Adds allocation rule for nonresidents/part-year residents using section 290.06, subdivision 2c, paragraph e."
]
},
"citation": "290.06",
"subdivision": "Subdivision 2c, paragraph e"
}
]Progress through the legislative process
In Committee