PRINTER'S NO. 154
No. 128 Session of 2007
INTRODUCED BY GODSHALL, ADOLPH, BAKER, BARRAR, BELFANTI, BENNINGHOFF, CALTAGIRONE, CAPPELLI, CAUSER, CLYMER, DALEY, DeLUCA, DePASQUALE, EVERETT, FABRIZIO, FAIRCHILD, FRANKEL, GEIST, GEORGE, GERGELY, GIBBONS, GINGRICH, GRELL, HARPER, HENNESSEY, HUTCHINSON, KILLION, KOTIK, MANN, MARKOSEK, McILHATTAN, MICOZZIE, MUSTIO, O'NEILL, PICKETT, RAPP, ROSS, RUBLEY, SANTONI, SCAVELLO, SCHRODER, SIPTROTH, SONNEY, STABACK, WALKO, WATSON, YOUNGBLOOD, YUDICHAK AND PETRARCA, JANUARY 31, 2007
REFERRED TO COMMITTEE ON FINANCE, JANUARY 31, 2007
AN ACT 1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An 2 act relating to tax reform and State taxation by codifying 3 and enumerating certain subjects of taxation and imposing 4 taxes thereon; providing procedures for the payment, 5 collection, administration and enforcement thereof; providing 6 for tax credits in certain cases; conferring powers and 7 imposing duties upon the Department of Revenue, certain 8 employers, fiduciaries, individuals, persons, corporations 9 and other entities; prescribing crimes, offenses and 10 penalties," providing for a personal income tax credit for 11 long-term care premiums paid by individuals; and imposing 12 duties on the Secretary of the Commonwealth and the 13 Legislative Reference Bureau. 14 The General Assembly of the Commonwealth of Pennsylvania 15 hereby enacts as follows: 16 Section 1. Section 301 of the act of March 4, 1971 (P.L.6, 17 No.2), known as the Tax Reform Code of 1971, is amended by 18 adding a clause to read: 19 Section 301. Definitions.--Any reference in this article to 20 the Internal Revenue Code of 1986 shall mean the Internal
1 Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), 2 as amended to January 1, 1997, unless the reference contains the 3 phrase "as amended" and refers to no other date, in which case 4 the reference shall be to the Internal Revenue Code of 1986 as 5 it exists as of the time of application of this article. The 6 following words, terms and phrases when used in this article 7 shall have the meaning ascribed to them in this section except 8 where the context clearly indicates a different meaning: 9 * * * 10 (l.3) "Long-term care policy" means a policy for long-term 11 care insurance as those terms are defined in section 1103 of the 12 act of May 17, 1921 (P.L.682, No.284), known as "The Insurance 13 Company Law of 1921." 14 * * * 15 Section 2. The act is amended by adding a section to read: 16 Section 314.1. Long-Term Care Policy Premiums.--(a) A 17 resident taxpayer shall be allowed a credit against the tax 18 imposed by this article in an amount equal to the lesser of 19 twenty per cent of any premiums paid during the taxable year by 20 the taxpayer for a long-term care policy for the taxpayer, the 21 taxpayer's spouse, or both, or five hundred dollars ($500). 22 (b) The credit provided under this section shall not exceed 23 the amount of the tax otherwise due under this article. 24 Section 3. The addition of sections 301(l.3) and 314.1 of 25 the act shall apply to taxable years beginning after December 26 31, 2006. 27 Section 4. If a constitutional amendment authorizing a 28 personal income tax credit for long-term care premiums is 29 ratified, the Secretary of the Commonwealth shall, immediately 30 after tabulating and computing the returns of the ratification 20070H0128B0154 - 2 -
1 election, certify the result to the Legislative Reference Bureau 2 for publication as a notice in the Pennsylvania Bulletin. 3 Section 5. This act shall take effect as follows: 4 (1) The addition of section 314.1 of the act shall take 5 effect upon publication of the notice under section 4. 6 (2) The remainder of this act shall take effect 7 immediately. A8L72SFL/20070H0128B0154 - 3 -