The Minnesota State Legislature convened on February 13, 2025, to introduce Senate Bill 1399, a legislative proposal aimed at amending the state's long-term care insurance tax credit. This bill seeks to increase the maximum allowable credit for individual taxpayers who pay premiums for long-term care insurance policies.

The primary provision of Senate Bill 1399 amends Minnesota Statutes 2024, specifically section 290.0672, subdivision 2. Under the current law, taxpayers can claim a credit equal to 25 percent of premiums paid for long-term care insurance, with a maximum credit of $100 for each qualified beneficiary. The proposed changes would raise this maximum credit to $250 per beneficiary. Additionally, the total credit limit for married couples filing jointly would increase from $200 to $500, while the limit for all other filers would rise from $100 to $250.

The bill addresses the growing concern over the affordability of long-term care, which has become increasingly relevant as Minnesota's population ages. Proponents argue that enhancing the tax credit will encourage more residents to invest in long-term care insurance, ultimately alleviating potential financial burdens on the state’s healthcare system.

As the bill progresses through the legislative process, it has sparked discussions among lawmakers regarding its economic implications. Supporters emphasize the potential for reduced state healthcare costs in the long run, while opponents raise concerns about the impact on state revenue and the fairness of tax credits.

Senate Bill 1399 is currently referred to the Taxes Committee for further deliberation. If passed, the changes would take effect for taxable years beginning after December 31, 2024. The outcome of this bill could significantly influence the landscape of long-term care insurance in Minnesota, making it a key topic for both legislators and constituents in the coming months.