Employer-Provided Long-Term Care Benefits Tax Credit Worksheet For Tax Year 2015 (Page 2 of 2) in pdf

Employer-Provided Long-Term Care Benefits Tax Credit Worksheet For Tax Year 2015 Page 2

2015

EMPLOYER-PROVIDED LONG-TERM CARE BENEFITS TAX CREDIT

WORKSHEET INSTRUCTIONS

This credit is available to employers that incur costs to provide eligible long-term care insurance to employees.

For purposes of this credit, employer means any entity that employs one or more individuals performing services

for it within this state. For a complete deﬁ nition, see 26 M.R.S. § 1043. Eligible long-term care insurance

includes coverage under a qualiﬁ ed long-term care insurance contract or under a long-term care insurance

policy certiﬁ ed by the Superintendent of Insurance in accordance with Title 24-A. A qualiﬁ ed long-term care

insurance contract is deﬁ ned by IRC § 7702B(b) as any contract that provides coverage for qualiﬁ ed long-term

care services. Qualiﬁ ed long-term care services means necessary diagnostic, preventive, therapeutic, curing,

treating, mitigating and rehabilitative services and maintenance or personal care services, which are required by

a chronically ill individual and that are provided in accordance with a plan of care prescribed by a licensed health

care practitioner. The term chronically ill individual is deﬁ ned by IRC § 7702B(c)(2). Qualiﬁ ed long-term care

insurance contracts must also meet other technical requirements as speciﬁ ed in § 7702B(b).

The allowable Maine credit is equal to the lowest of:

1) $5,000;

2) 20% of the actual costs incurred in providing long-term care insurance coverage to employees; or

3) $100 for each employee covered by a qualiﬁ ed long-term care insurance contract provided by the

employer.

The credit is limited to the regular income tax otherwise due (the credit does not apply to the corporate alternative

minimum tax), but any excess may be carried forward for up to 15 years.

In the case of pass-through entities (such as partnerships, LLCs, S corporations, and trusts), the partners,

members, shareholders, beneﬁ ciaries or other owners are allowed credits in proportion to their respective

interests in these entities.

Employer-Provided Long-Term Care Benefits Tax Credit Worksheet For Tax Year 2015 Page 2