BILL NUMBER: S8911 Revised 01/14/26
SPONSOR: HELMING
 
TITLE OF BILL:
An act to amend the tax law, in relation to long-term care insurance
 
PURPOSE:
To increase the amount of the credit against taxes for long-term care
insurance from 20% to 40% of the premiums paid by the consumer in a
taxable year, and to raise the cap on the credit from $1,500 to $2,500
 
SUMMARY OF PROVISIONS:
Section 1: Amends the tax law to set the amount of the credit against
taxes for long-term care insurance to 40% of the premiums paid in a
taxable year
Section 2: Adjusts language in tax law to new credit amount and
increases the cap on the credit against taxes for long-term care insur-
ance from $1,500 to $2,500
Section 3: Adjusts language in tax law to new credit amount
Section 4: Sets the effective date
 
JUSTIFICATION:
Many New Yorkers have recently reported significant increases in the
cost of long-term care insurance. For example, a resident of Rockland
County shared that the annual cost of his long-term care plan was
projected to increase by almost $20,000 in only four years.
The Department of Financial Services (DFS) is responsible for approving
long-term care insurance rate increase requests. In their appeals to
DFS, insurers cite they are experiencing significant cost increases
driven by a number of factors, including state-imposed taxes, longer
life expectancies, and increasing insurance claim durations.
These cost increases are not sustainable. For many seniors who have been
paying for long-term care coverage for decades, these significant cost
increases are forcing them to abandon plans at a time when they are more
likely to need these services.
New York State currently offers a 20% tax credit for taxpayers if they
pay premiums for longterm care insurance plans. In a biennial report
made to the Legislature and the Governor, DFS made a recommendation that
our state increase its efforts to educate the public about this tax
credit, making consumers aware of the benefits they may be eligible for.
However, the recently DFS-approved hikes in long-term care premium costs
and the ongoing affordability crisis in New York make it necessary to
provide additional relief to consumers. This can be accomplished by
increasing the tax credit for qualified taxpayers.
This legislation proposes increasing the state tax credit for taxpayers
paying for a long-term care insurance plan to 40% of the premiums paid
during the taxable year. This legislation also proposes raising the cap
on the tax credit from $1,500 to $2,500 per taxable year.
This financial relief will help ensure that long-term care coverage
remains accessible to those who have planned and paid into their poli-
cies for many years. It will also make purchasing longterm care insur-
ance less burdensome for prospective consumers.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8911: 190 tax law, 190(1) tax law, 606 tax law, 606(aa) tax law, 210-B tax law, 210-B(14) tax law