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.
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.