SENATE DOCKET, NO. 1461        FILED ON: 1/14/2009

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1320

The Commonwealth of Massachusetts

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In the Year Two Thousand Nine

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An Act Relative to Long Term Care Incentives..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1.  Paragraph (b) of Part B of section 3 of chapter 62 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding, after subparagraph (5), the following subparagraph:-

(6) In the case of an individual who purchases a qualified long-term care insurance policy, as defined by chapter 176Q, including both nursing facility and home health benefits, an amount equal to 100 per cent of the annual premium of the insurance policy not to exceed $5,000.  Married individuals filing jointly or separately are each entitled to an exemption from taxable income equal to 100 per cent of the annual premium but not more than $5,000.

SECTION 2.  Chapter 63 of the general laws, as so appearing, is hereby amended by adding, after section 37A the following new section:-

Section 37A ½ . A business entity under this chapter is allowed a credit against the tax imposed by this chapter for each taxable year that begins on July 1, 2011 equal to fifteen percent of the costs incurred by the taxpaying business entity in providing long-term care coverage, as defined in section 1 of chapter 176Q, as part of a benefit package to its employees.