Income Tax - Credit for Long-Term Care Premiums

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1437*

HOUSE BILL 1437
Q3 6lr1671
HB 1276/25 – W&M CF 6lr3601
By: Delegates Howard, Adams, Arentz, Beauchamp, Buckel, Ciliberti, Hartman,
Hornberger, Hutchinson, Jacobs, McComas, Miller, T. Morgan, Nkongolo,
Reilly, Rose, and Schmidt
Introduced and read first time: February 13, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Credit for Long–Term Care Premiums 2

FOR the purpose of altering the definition of “eligible long –term care premiums” for 3
purposes of a certain credit against the State income tax for certain long –term care 4
insurance premiums paid by a taxpayer; altering a certain limitation on the credit; 5
altering the amount a taxpayer may claim as a credit for certain long –term care 6
insurance purchased after a certain date; and generally relating to an income tax 7
credit for eligible long–term care premiums. 8

BY repealing and reenacting, with amendments, 9
Article – Tax – General 10
Section 10–718 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2025 Supplement) 13

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15

Article – Tax – General 16

10–718. 17

(a) In this section, “eligible long–term care premiums” means eligible long –term 18
care premiums within the meaning of § 213(d)(10) of the Internal Revenue Code for a 19
long–term care insurance contract covering an individual who is a Maryland resident AND 20
IS AT LEAST 45 YEARS OLD. 21

(b) [An individual] A TAXPAYER may claim a credit against the State income tax 22
2 HOUSE BILL 1437

in an amount equal to 100% of the eligible long –term care prem iums paid by the 1
[individual] TAXPAYER during the taxable year for long–term care insurance covering the 2
[individual] TAXPAYER or the [individual’s] TAXPAYER’S spouse, parent, stepparent, 3
child, or stepchild. 4

(c) The credit allowed under this section: 5

(1) [may not exceed $500 for ] WITH RESPECT TO each insured 6
INDIVIDUAL covered by long –term care insurance for which the [individual] TAXPAYER 7
pays the premiums, MAY NOT EXCEED $250 FOR A TAXABLE YEAR BEGINNING AFTER 8
DECEMBER 31, 2026; 9

(2) may not be claimed by more than one taxpayer with respect to the same 10
insured individual IN THE SAME TAXABLE YEAR; and 11

(3) may not be claimed with respect to an insured individual if: 12

(i) the insured individual was covered by long–term care insurance 13
at any time before [July 1, 2000] JANUARY 1, 2027; [or] AND 14

(ii) the credit has been claimed with respect to that insured 15
individual by any taxpayer for any [prior] taxable year BEGINNING BEFORE JANUARY 1, 16
2027. 17

(d) (1) The total amount of the credit allowed under this section for any taxable 18
year may not exceed the State income tax for that taxable year, calculated before 19
application of the credits under this section and §§ 10 –701 and 10 –701.1 of this subtitle, 20
but after application of the other credits allowable under this subtitle. 21

(2) The unused amount of the credit for any taxable year may not be carried 22
over to any other taxable year. 23

(e) The credit allowed under this section does not affect the treatment under this 24
title of any deduction or exclusio n allowed for federal income tax purposes for the eligible 25
long–term care premiums paid by the individual. 26

(f) On or before December 1, 2005, and each December 1 thereafter, the 27
Comptroller shall report to the Governor and, subject to § 2–1257 of the State Government 28
Article, to the General Assembly, regarding the credit allowed under this section, including: 29

(1) the number of individuals who have claimed the credit, the amount 30
allowed as credits, and the additional number of individuals covered by lon g–term care 31
insurance as a result of the credit; and 32

(2) the savings under the State’s Medical Assistance Program as a result 33
of additional individuals being covered by long–term care insurance as a result of the credit. 34
HOUSE BILL 1437 3

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2026. 2