HR8820-118

1. Short title This Act may be cited as the Improving Access to Long-Term Care Insurance Act.

2. Deduction for long-term care insurance premiums Section 213 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: In the case of any eligible long-term care premiums taken into account under subsection (a), such subsection shall be applied— without regard to the phase to the extent that such expenses exceed 7.5 percent of adjusted gross income for purposes of determining the deduction allowed under such subsection for such premiums, and by taking such premiums into account for purposes of determining whether a deduction is allowed under such subsection with respect to any other expenses paid for medical care. Section 62(a) of such Code is amended by inserting after paragraph (21) the following new paragraph: The deduction allowed under section 213 for eligible long-term care premiums (as defined in section 213(d)(10)). The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (f)Long-Term care insurance premiums not subject to minimum amount of expensesIn the case of any eligible long-term care premiums taken into account under subsection (a), such subsection shall be applied— (1)without regard to the phase to the extent that such expenses exceed 7.5 percent of adjusted gross income for purposes of determining the deduction allowed under such subsection for such premiums, and (2)by taking such premiums into account for purposes of determining whether a deduction is allowed under such subsection with respect to any other expenses paid for medical care.. (22)Deduction for long-term care insurance premiumsThe deduction allowed under section 213 for eligible long-term care premiums (as defined in section 213(d)(10))..

3. Reduction of certain tax credits Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subpart: In the case of any specified credit, the amount of such credit for any taxable year shall be reduced by the applicable percentage (determined under paragraph (2) with respect to such taxable year) of such amount (determined without regard to this subsection). For purposes of this section— The term applicable percentage means, with respect to any taxable year the due date (determined without regard to any extension) of the return of tax for which is during any fiscal year, the percentage which the Secretary estimates will result in an increase in revenue to the Treasury during such fiscal year which is equal to the net decrease in revenue to the Treasury during such fiscal year that the Secretary estimates will result from the amendments made by section 2 of the Improving Access to Long-Term Care Insurance Act. The applicable percentage determined under the preceding sentence with respect to any taxable year shall be made publicly available by the Secretary before the beginning of such taxable year. The increase and decrease in revenue referred to in paragraph (1) shall be determined, to the maximum extent practicable, using the same methodology as is used by the Joint Committee on Taxation to estimate the budgetary effects of legislative proposals. For purposes of this section, the term specified credits means the credits determined under sections 25C, 25D, 25E, 30B, 30C, 30D, 40A, 45, 45H, 45K, 45L, 45Q, 45Y, 48A, 48B, and 48E. The table of subparts for part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. HReduction of certain credits Sec. 54. Reduction of certain credits. 54.Reduction of certain credits (a)In generalIn the case of any specified credit, the amount of such credit for any taxable year shall be reduced by the applicable percentage (determined under paragraph (2) with respect to such taxable year) of such amount (determined without regard to this subsection). (b)Applicable percentageFor purposes of this section— (1)In generalThe term applicable percentage means, with respect to any taxable year the due date (determined without regard to any extension) of the return of tax for which is during any fiscal year, the percentage which the Secretary estimates will result in an increase in revenue to the Treasury during such fiscal year which is equal to the net decrease in revenue to the Treasury during such fiscal year that the Secretary estimates will result from the amendments made by section 2 of the Improving Access to Long-Term Care Insurance Act. The applicable percentage determined under the preceding sentence with respect to any taxable year shall be made publicly available by the Secretary before the beginning of such taxable year. (2)MethodologyThe increase and decrease in revenue referred to in paragraph (1) shall be determined, to the maximum extent practicable, using the same methodology as is used by the Joint Committee on Taxation to estimate the budgetary effects of legislative proposals. (c)Specified creditsFor purposes of this section, the term specified credits means the credits determined under sections 25C, 25D, 25E, 30B, 30C, 30D, 40A, 45, 45H, 45K, 45L, 45Q, 45Y, 48A, 48B, and 48E.. Subpart H—Reduction of certain credits.

54. Reduction of certain credits In the case of any specified credit, the amount of such credit for any taxable year shall be reduced by the applicable percentage (determined under paragraph (2) with respect to such taxable year) of such amount (determined without regard to this subsection). For purposes of this section— The term applicable percentage means, with respect to any taxable year the due date (determined without regard to any extension) of the return of tax for which is during any fiscal year, the percentage which the Secretary estimates will result in an increase in revenue to the Treasury during such fiscal year which is equal to the net decrease in revenue to the Treasury during such fiscal year that the Secretary estimates will result from the amendments made by section 2 of the Improving Access to Long-Term Care Insurance Act. The applicable percentage determined under the preceding sentence with respect to any taxable year shall be made publicly available by the Secretary before the beginning of such taxable year. The increase and decrease in revenue referred to in paragraph (1) shall be determined, to the maximum extent practicable, using the same methodology as is used by the Joint Committee on Taxation to estimate the budgetary effects of legislative proposals. For purposes of this section, the term specified credits means the credits determined under sections 25C, 25D, 25E, 30B, 30C, 30D, 40A, 45, 45H, 45K, 45L, 45Q, 45Y, 48A, 48B, and 48E.