You asked for a summary of bills the Human Services Committee favorably reported to the Finance, Revenue, and Bonding Committee.

SSB 557, AN ACT CONCERNING A TAX CREDIT ON THE CORPORATE BUSINESS TAX FOR PROVIDING LONG-TERM CARE INSURANCE AND PAYING PREMIUMS FOR EMPLOYEES

This bill provides a 20% corporate tax credit for any premiums an employer pays for long-term care insurance policies (which include individual, group, or Connecticut Long Term Care Partnership policies) on behalf of its employees. It also provides an additional 10% credit to the employer for “providing” long-term care insurance benefits to its employees.

It would appear to give employers the 20% premium credit only when the employee purchases the policy on his or her own, while giving employers the 20% plus an additional 10% credit for their costs when they directly provide the benefit, which could include premiums and administrative costs.

The bill provides that any credits that are not used can be carried forward and claimed for no more than five years.

The bill is effective on July 1, 2008 and applicable to tax years beginning in 2008. It is applicable to any insurance payments made during those years.

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