NU Online News Service, April 22, 5:16 p.m. – Maine Gov. Angus King Jr., an Independent, has signed H.B. 70, a bill that expands deductibility of long-term care insurance premiums.
Under the old law, Maine provided a tax deduction for individuals who bought long-term care insurance, and an annual tax credit of up to $5,000 for employers that provided long-term care coverage for employees.
But Maine offered the tax breaks only to individuals and employers that bought “tax-qualified” policies, or policies that qualified for special tax treatment by the federal government.
Some long-term care insurance companies and brokers argue that many consumers would be better off with richer benefits packages than the federal LTC tax rules permit.
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H.B. 70 helps state residents who buy “non-qualified” LTC insurance policies by making the same tax breaks available to consumers who buy “state-certified” LTC coverage.