West North Avenue Development Authority - Neighborhood Social Connection and Development Program - Establishment (WNADA Neighborhood Social Connection and Development Act)
HB1276 revises Maryland’s income tax credit for eligible long-term care insurance premiums. The bill broadens the definition of eligible premiums by limiting the credit to policies covering Maryland residents who are at least 45 years old, and it changes the credit from being claimed by an individual to being claimed by a taxpayer. It also updates the rules for when the credit may be taken, including a new cutoff for policies covered before January 1, 2026, and for credits previously claimed before that date.
The bill reduces the maximum credit amount for each insured individual from $500 to $250 for taxable years beginning after December 31, 2025, while keeping the credit equal to 100% of eligible premiums paid. It continues to bar multiple taxpayers from claiming the credit for the same insured person in the same year and preserves the existing limitation that the credit cannot exceed the taxpayer’s State income tax liability. The bill takes effect July 1, 2025, and applies to taxable years beginning after December 31, 2025.
In practical terms, HB1276 affects Maryland’s Tax-General Article § 10-718 and changes who can benefit from the long-term care premium credit, the age threshold for covered individuals, and the amount of the credit available. It may reduce the fiscal cost of the credit to the State while still encouraging purchase of long-term care insurance, which can affect future Medicaid/Medical Assistance expenditures if more residents maintain private coverage.
Based on the available record, there is no committee transcript or vote history showing debate, amendments, or opposition, so the overall sentiment cannot be directly measured from discussion. The bill appears to be a targeted tax-policy adjustment rather than a controversial policy overhaul, but the lowered credit cap and new eligibility restrictions could be points of concern for taxpayers, insurers, or advocates for long-term care affordability.
HB1276 amends Maryland Tax-General Article § 10-718, changing the long-term care insurance premium income tax credit by narrowing eligibility, lowering the per-insured-person cap to $250 for taxable years after December 31, 2025, and applying the revised rules only to future taxable years. It affects taxpayers who pay premiums for their own or certain family members’ long-term care insurance and may modestly reduce state revenue losses from the credit while potentially influencing long-term care insurance uptake and related Medical Assistance costs.
No committee discussion or vote record was provided, so there is no documented floor or committee sentiment to summarize. From the text alone, the bill reads as a technical, fiscally oriented adjustment to an existing tax credit, suggesting a generally neutral or pragmatic policy posture rather than a highly partisan one.
The main potential points of contention are the reduced credit amount, the new age threshold of 45 for eligible covered residents, and the tighter rules limiting claims for policies and credits tied to coverage before January 1, 2026. Taxpayers who currently rely on the larger credit, as well as advocates for broader long-term care insurance incentives, may view the bill as narrowing access or reducing affordability, while fiscal conservatives or budget-minded legislators may support the lower cap and tighter eligibility as a way to limit state tax expenditures.