Sec. 6. 36 MRSA §5217-C, as enacted by PL 1999, c. 521, Pt. C, §8 and affected by §9, is repealed.

Sec. 7. Retroactivity. This Act applies retroactively to January 1, 2000.

SUMMARY

Public Law 1999, chapter 521 changed the tax treatment of employer-provided long-term care benefits to allow a credit for the amount paid for premiums against the tax imposed upon all gross direct premiums up to the amount of the tax due; chapter 521 applies to all policies issued beginning January 1, 2000. Premiums on policies issued before that date are fully deductible against the state income tax.

This bill restores the full deductibility of employer-provided long-term care benefit premiums that are certified by the Superintendent of Insurance as complying with current requirements for long-term care insurance and applies the deductibility retroactively to January 1, 2000.