LTC Support and Incentive Act (H.R. 2935)

Key Components:

• Amend the IRC to: (1) allow a tax deduction from gross income for 50% of the LTC premiums paid under a qualified LTC insurance contract for individuals under age 65 (increases the deduction percentage to 75% for premiums paid for individuals age 65+); (2) permit qualified LTC insurance contracts to be offered in a cafeteria plan and FSAs under certain conditions; (3) allow a nonrefundable tax credit of $4,000, subject to a phase-out for incomes exceeding $150,000 (joint returns) or $75,000 (individuals), for each individual age 65+ who has been certified as having LTC needs for at least 180 consecutive days in a taxable year and for whom the taxpayer is acting as a caregiver; and (4) mandate certain consumer protections for insurance contracts.